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precision company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. the variable manufacturing overhead rate is $4 per machine-hour. the fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense.

Respuesta :

Variable manufacturing overhead for the year = Variable manufacturing overhead rate per machine-hour total machine-hours required for the year; $400,000 = $4 100,000 machine-hours

The number of units sold is determined to be the cost driver for a company's variable selling and administrative expense budget.

The sum of its factor selling and administrative rates and budgeted unit sales will be Budget for variable depreciation and amortization

When the variable selling and administrative expense budget is based on the number of units sold, the variable selling and administrative rate multiplied by the budgeted sales numbers in the total fixed and variable attempting to sell and administrative cost budget

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