Morie corporation is working on its direct labor

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38. Morie Corporation is working on its direct labor budget for the next two months. Each unit of output  requires 0.75 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production  budget calls for producing 2,000 units in March and 2,300 units in April. The company guarantees its  direct 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 1,760 hours in total  each month even if there is not enough work to keep them busy. What would be the total combined direct  labor cost for the two months? A) $28,512.00 B) $26,406.00 C) $28,228.50 D) $26,122.50 Level: Easy    LO:  5    Ans:  A 39. Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in January. The variable overhead rate is  $1.80 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $102,950 per  month, which includes depreciation of $19,880. All other fixed manufacturing overhead costs represent  current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing  overhead budget should be: 40. Axsom Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor  budget indicates that 1,300 direct labor-hours will be required in March. The variable overhead rate is  $8.90 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $20,020 per  month, which includes depreciation of $2,600. All other fixed manufacturing overhead costs represent  current cash flows. The company recomputes its predetermined overhead rate every month. The  predetermined overhead rate for March should be: Brewer, Introduction to Managerial Accounting, 3/e 112
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Brewer, Introduction to Managerial Accounting, 3/e 113
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