Asked by
Syed Aazam Jonaid
on Oct 11, 2024
Verified
If the budgeted cash disbursements for manufacturing overhead for December total $105,000, then the budgeted direct labor-hours for December must be:
A) 6,000 direct labor-hours
B) 21,000 direct labor-hours
C) 9,000 direct labor-hours
D) 3,000 direct labor-hours
Cash Disbursements
The outflow of cash for expenses, including paying bills, employees, and suppliers, among others.
Direct Labor-hours
The sum of working hours of employees directly contributing to the production activities.
- Examine the interconnection between projected sales, manufacturing, and cash payouts.
- Learn the budgeting process involved in distributing manufacturing overhead costs with respect to direct labor hours.
Verified Answer
AB
Learning Objectives
- Examine the interconnection between projected sales, manufacturing, and cash payouts.
- Learn the budgeting process involved in distributing manufacturing overhead costs with respect to direct labor hours.
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