Garmin, Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 7,100 direct labor hours will be required in January. The variable overhead rate is $1.80 per direct labor hour. The companys budgeted fixed manufacturing overhead is $102,950 per month, which includes depreciation of $19,880. All other fixed manufacturing overhead costs represent current cash flows.

The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

a. $115,730.

b. $95,850.

c. $12,780.

d. $83,070