Question
Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in January.
Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in January. The variable overhead rate is $1.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,350 per month, which includes depreciation of $9,000. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $91,350 $8,800 $109,150 $100,150
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