Question
Memans bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7200 direct labor-hours will be required in August. The
Memans bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7200 direct labor-hours will be required in August. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,380 per month, which includes depreciation of $8970. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
$113,340
$12,960
$104,370
$91,410
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