Question
ABC Company began its operations on March 31, 2019. Projected manufacturing overhead costs for the first three months of business are $156,800, $197,200, and $217,600,
ABC Company began its operations on March 31, 2019. Projected manufacturing overhead costs for the first three months of business are $156,800, $197,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes for the production facility total $28,800 per month and are included in those estimated monthly manufacturing overhead costs as follows: (1) depreciation included is $15,000 per month; (2) insurance expense of $6,000 is included in each month but was paid for the full year on March 31ststartup; and (3) $7,800 of estimated property tax expense is included in each month, but no property taxes will actually be paid until November. For the remainder of manufacturing overhead costs, 50% is expected to be paid in the month when the costs are incurred, with the balance to be paid in the following month.
The projected cash disbursements for manufacturing overhead in the month ofMayare:
Group of answer choices
$156,000
$154,200
$177,000
$148,200
None of the other answers are correct.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started