MaverickMaverick Co. budgets production of 120 comma 000120,000 units in the next year. MaverickMaverick's CFO expects that each unit will take 1010 hours to produce at an hourly wage rate of $ 12$12 per hour. If factory overhead is applied to direct labor hours at $ 3$3 per hour, the budget for factory overhead will total: A. $ 18 comma 000 comma 000$18,000,000 B. $ 3 comma 600 comma 000$3,600,000 C. $ 4 comma 320 comma 000$4,320,000 D. $ 14 comma 400 comma 000$14,400,000 C

B. $ 3 comma 600 comma 000$3,600,000

Explanation:

The total manufacturing cost of an entity maybe divided into two broad classes. These are direct and indirect cost. The indirect cost are also known as the overheads and may be further divided into fixed and variable overheads. The variable overheads may be given as a function of direct cost such as machine hours, direct labor hours etc.

Given that

Total units to be produced = 120,000

Time required to produce a unit = 10 hours

Hence total number of hours required

= 120,000 × 10

= 1,200,000 hours

Hourly wage rate = $12

If Factory overheads is applied to direct labor hours at $3 per hour

Factory overheads = $3 × 1,200,000

= $3,600,000

nice

explanation:

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two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.