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Bustillo Corporation bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labor-hours will be required in August.
Bustillo Corporation bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labor-hours will be required in August. The variable overhead rate is $5.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $69,440 per month, which includes depreciation of $34,680. All other fixed manufaturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufturing overhead budget should be: $84,000 $65,000 $99,680 $53,760
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