Ferguson Inc bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.70 per direct labor- hour. The company's budgeted fixed manufacturing overhead is $95,460 for the year, which includes depreciation of $19,850. The costs will be paid in the year incurred. The direct labor budget indicates that 8,600 direct labor-hours will be required for the year

Required:

a. Prepare Ferguson's manufacturing overhead budget. Show the numbers you use to compute the total manufacturing overhead expenses.

b. Determine the cash disbursements for manufacturing overhead for the year. The costs will be paid in the year incurred

c. Compute the predetermined overhead rate for the year. The company uses direct labor hours to assign overhead to the products produced