Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $6.80 per direct labor hour; the budgeted fixed manufacturing overhead is $72,000 per month, of which $20,000 is factory depreciation. If the budgeted direct labor time for October is 5,000 hours, then the total budgeted manufacturing overhead for October is:
A) $52,000
B) $106,000
C) $54,000
D) $86,000

Regarding the flow of costs through the inventory accounts, which of the following statements is incorrect? a. the costs flow from raw materials inventory to work-in-process inventory to finished goods inventory. b. the format for computing the amount used, manufactured, or sold is the same for all three inventory accounts. c. the final amount at each stage is added at the beginning of the next stage. d. purchases of raw material and freight in are debited to the work-in-process inventory account.