Which of the following is not correct regarding the manufacturing overhead budget?
A.Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
B. Manufacturing overhead costs should be broken down by cost behavior.
C.The manufacturing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor.
D. A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.
Answer: A. Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
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Accounting Chapter 8
- Which of the following statements is not correct?
- Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?
- In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling and administrative expenses to determine the expected cash disbursements for selling and administrative expenses.
- Both variable and fixed manufacturing overhead costs are included in the manufacturing overhead budget.
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