27. The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $82,360 per month, which includes depreciation of $16,820. All other fixed manufacturing overhead costs represent current cash flows.
Determine the cash disbursement for manufacturing overhead for February. Show your work!
Determine the predetermined overhead rate for February. Show your work!
28. In developing a direct material price standard, the expected freight cost on the materials should be included. TRUE
The production department should generally be responsible for material price variances that resulted from:
purchases made in uneconomical lot-sizes.
rush orders arising from poor scheduling.
purchase of the wrong grade of materials.
changes in the market prices of raw materials.