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

Multiple Choice

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 direct labor time for December is 4,000 hours, then the average budgeted manufacturing overhead per direct labor-hour is:

A) $16.00 per direct labor-hour
B) $15.50 per direct labor-hour
C) $20.00 per direct labor-hour
D) $24.50 per direct labor-hour