4. come home 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:

9,000 hours

Explanation:

Budgeted cash disbursements for factory overhead for December total

= $105,000

Total budgeted factory overhead for December:

= Budgeted cash disbursements for factory overhead + Depreciation per month

= $105,000 + 15,000

= 120,000

Variable Factory Overhead:

= Total budgeted factory overhead for December - Fixed Overhead

= 120,000 - 75,000

= 45,000

Budgeted direct labor time for December:

= Variable Factory Overhead ÷ Variable Factory Overhead rate per direct labor hour

= 45,000 ÷ 5

= 9,000 hours

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