The Charade Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

Multiple Choice

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is factory depreciation.If the budgeted cash disbursements for manufacturing overhead for December total $105,000, then the budgeted direct labor-hours for December must be:

A) 6,000 direct labor-hours
B) 21,000 direct labor-hours
C) 9,000 direct labor-hours
D) 3,000 direct labor-hours