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

Question 91

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The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation. If the budgeted cash disbursements for manufacturing overhead for November are $90,000, then the budgeted direct labor-hours for November must be:


A) 11,000 direct labor-hours
B) 22,500 direct labor-hours
C) 6,500 direct labor-hours
D) 2,000 direct labor-hours

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