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San Diego State University Operations And Supply Chain Management Assignment Help - Depreciation

Question - Avitia Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor
budget indicates that 3,700 direct labor-hours will be required in September. The variable overhead
rate is $5.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $48,100
per month, which includes depreciation of $5,550. All other fixed manufacturing overhead costs
represent current cash flows. The company recomputes its predetermined overhead rate every
month. The predetermined overhead rate for September should be:
a. $5.70
c. 18.70
d. 17.20

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