The manufacturing overhead budget at pendley corporation is based on budgeted direct labor-hours. the direct labor budget indicates that 8,900 direct labor-hours will be required in august. the variable overhead rate is $5.50 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $133,500 per month, which includes depreciation of $30,260. all other fixed manufacturing overhead costs represent current cash flows. the company recomputes its predetermined overhead rate every month. what should be the predetermined overhead rate for august? a. $5.50 b. $17.10 c. $15.00 d. $20.50

Correct option is B) $17.10

Total overhead rate per hour = $17.10

Explanation:

Overhead rates are based on cash outflow, they are not allocated and computed based on non cash items.

Total direct labor hours = 8,900

Thus total variable overhead rate = $5.50

Total cash fixed cost = $133,500 - $30,260 = $103,240

Fixed cost overhead rate = $103,240/8,900 = $11.60

Total overhead cost per hour = Variable overhead + Fixed Overhead = $5.50 + $11.60 = $17.10

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; commerce clearing house;