With the number of workers currently employed that

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labor workers a 40-hour paid work week. With the number of workers currently employed, that means  that the company is committed to paying its direct labor work force for at least 920 hours in total each  month even if there is not enough work to keep them busy. Required: Brewer, Introduction to Managerial Accounting, 3/e 154
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Construct the direct labor budget for the next two months. Brewer, Introduction to Managerial Accounting, 3/e 155
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Level: Medium    LO:  5     Ans:   129. Edgington Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The  variable overhead rate is $4.90 per direct labor-hour. The company’s budgeted fixed manufacturing  overhead is $39,590 per month, which includes depreciation of $5,920. All other fixed manufacturing  overhead costs represent current cash flows. The November direct labor budget indicates that 3,700 direct labor-hours will be required in that month. Required: (a.) Determine the cash disbursement for manufacturing overhead for November. (b.) Determine the predetermined overhead rate for November. Level: Easy    LO:  6     Ans:   130. The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor- hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that  month. The variable overhead rate is $2.00 per direct labor-hour. The company’s budgeted fixed  manufacturing overhead is $79,200 per month, which includes depreciation of $21,000. All other fixed  manufacturing overhead costs represent current cash flows.  Required: (a.) Determine the cash disbursement for manufacturing overhead for November. Show your work! (b.) Determine the predetermined overhead rate for November. Show your work! Level: Easy    LO:  6     Brewer, Introduction to Managerial Accounting, 3/e 156
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Ans:   131. Skeete Inc. bases its selling and administrative expense budget on the number of units sold. The  variable selling and administrative expense is $1.70 per unit. The budgeted fixed selling and  administrative expense is $57,720 per month, which includes depreciation of $9,360. The remainder of  the fixed selling and administrative expense represents current cash flows. The sales budget shows 3,900  units are planned to be sold in November. Required: Prepare the selling and administrative expense budget for November. Level: Easy    LO:  7     Ans:   132. The selling and administrative expense budget of Gullette Corporation is based on the number of  units sold., which are budgeted to be 2,700 units in April. The variable selling and administrative expense is $1.90 per unit. The budgeted fixed selling and administrative expense is $35,640 per month, which  includes depreciation of $7,290. The remainder of the fixed selling and administrative expense represents 
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