A company bases its manufacturing overhead budget on budgeted direct labor -hours . The direct labor budget indicates that 7,420 direct labor -hours will be required in August . The variable overhead rate is $ 1.80 per direct labor -hour . The companys budgeted fixed manufacturing overhead is $ 78,520 per month , which includes depreciation of $ 8,428 . All other fixed manufacturing overhead costs represent current cash flows . The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be : $ 86,948 $ 86,826 3, 4

A company bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,420 direct labor-hours will be required in August. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $78,520 per month, which includes depreciation of $8,428. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on manufacturing overhead budget should be: $86,948 $86,826 $83,448 P1,876