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Fill in the Blank QuestionFill in the blank question.A manufacturing company has budgeted direct labor hours of 940 at a budgeted direct labor hour rate of $15. The budgeted fixed cost is $950 per month. The total budgeted overhead cost for this month will be $_.

Question

Fill in the Blank QuestionFill in the blank question.A manufacturing company has budgeted direct labor hours of 940 at a budgeted direct labor hour rate of 15.Thebudgetedfixedcostis15. The budgeted fixed cost is 950 per month. The total budgeted overhead cost for this month will be $_.

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Solution

To calculate the total budgeted overhead cost for the month, you need to add the budgeted direct labor cost and the budgeted fixed cost.

Step 1: Calculate the budgeted direct labor cost The budgeted direct labor cost is the product of the budgeted direct labor hours and the budgeted direct labor hour rate.

Budgeted direct labor cost = Budgeted direct labor hours * Budgeted direct labor hour rate = 940 hours * 15/hour=15/hour = 14,100

Step 2: Add the budgeted fixed cost The total budgeted overhead cost is the sum of the budgeted direct labor cost and the budgeted fixed cost.

Total budgeted overhead cost = Budgeted direct labor cost + Budgeted fixed cost = 14,100+14,100 + 950 = $15,050

So, the total budgeted overhead cost for this month will be $15,050.

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