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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.

Required:

  • a.

    Determine the cash disbursement for manufacturing overhead for February. Show your work!

  • b.

    Determine the predetermined overhead rate for February. Show your work!

a.

b.

28. In developing a direct material price standard, the expected freight cost on the materials should be included. TRUE

  • 29.

    The production department should generally be responsible for material price variances that resulted from:

    • a.

      purchases made in uneconomical lot-sizes.

    • B.

      rush orders arising from poor scheduling.

    • c.

      purchase of the wrong grade of materials.

    • d.

      changes in the market prices of raw materials.

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