Speedy Runner makes running shoes and they are anticipating the incurrence of the following manufacturing overhead costs during the upcoming​ year:
Cost Indirect materials $ 13,000
Indirect Labor $ 70,000
Utilities $ 47,000
Insurance $ 7,500
Taxes $ 9,400
Depreciation on equipment $ 26,000
Required:
a. What will Speedy Runner budget for cash disbursements related to manufacturing​ overhead?

Respuesta :

Answer:

$146,900

Explanation:

Overhead are all the indirect expense of the business.Manufacturing overhead are all the indirect expenses which incurred for the manufacturing purpose of the product. All the variable and fixed indirect costs are included in it e.g indirect material, utilities etc.

All the following cots are the manufacturing costs.

Cost Indirect materials $13,000

Indirect Labor               $70,000

Utilities                          $47,000

Insurance                      $7,500

Taxes                            $9,400  

Total                             $146,900

Total Manufacturing Overhead are $146,900

a. The budget for cash disbursements related to manufacturing​ overhead is $146,900.

  • The calculation is as follows:

Cost Indirect materials $13,000

Indirect Labor               $70,000

Utilities                          $47,000

Insurance                      $7,500

Taxes                            $9,400  

Total                             $146,900

Hence, we can conclude that the budget for cash disbursements related to manufacturing​ overhead is $146,900.

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