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Firelight Corporation manufactures and sells two types of decorative​ lamps, Knox and Ayer. The following data are available for the year 2020. Machine​ setup-hours is the only driver of manufacturing overhead costs. Firelight has a set up capacity of 660 hours.


Required:

Calculate the manufacturing overhead costs budget

Respuesta :

The manufacturing overhead budget contains the manufacturing costs other than the direct materials and direct labor.

What is manufacturing overhead budget?

Your information is incomplete. Therefore, an overview will be given. The information in the manufacturing overhead budget is part of the cost of goods sold line item in the master budget.

One can calculate it by dividing the total expected overhead costs for one period by the number of direct labor hours expected in that period.

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