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I'm not sure what to do with the depreciation. Doe Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget
I'm not sure what to do with the depreciation. Doe Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 8000 direct labor hours will be required in May. The variable overhead rate is $1.30 per direct labor hour. The company's budgeted fixed manufacturing overhead is $100,000 per month which includes depreciation of $9000. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be
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