The Manufacturing Overhead Budget of Paparella Corporation Is Based on Budgeted

Essay

The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that month. The variable overhead rate is $2.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $79,200 per month, which includes depreciation of $21,000. All other fixed manufacturing overhead costs represent current cash flows.
Required:
a. Determine the cash disbursements for manufacturing overhead for November. Show your work!
b. Determine the predetermined overhead rate for November. Show your work!