The Ramirez Company budgets variable manufacturing overhead at 60% of direct labor costs. If the company estimates that 10,000 direct labor hours will be used at an average rate of $8.50 per hour. Fixed manufacturing overhead costs are budgeted at $45,000 with $10,000 of that amount being depreciation on plant machinery. Total budgeted manufacturing overhead will be: a. $130,000
B) $96,000
C) $120,000
D) $86,000

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The Answer of The Ramirez Company budgets variable manufacturing overhead at 60% of direct labor costs. If the company estimates that 10,000 direct labor hours will be used at an average rate of $8.50 per hour. Fixed manufacturing overhead costs are budgeted at $45,000 with $10,000 of that amount being depreciation on plant machinery. Total budgeted manufacturing overhead will be: a. $130,000
B) $96,000
C) $120,000
D) $86,000

The Ramirez Company Budgets Variable Manufacturing Overhead at 60% of Direct