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Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing
Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54, 080 per month, which includes depreciation of $3, 840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3, 200 direct labor-hours will be required in October. The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $68, 800 $14, 720 $50, 240 $64, 960
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