Problem #8

The manufacturing overhead budget of the Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 7,500 direct labor-hours will be required in that month. The variable overhead rate is $4.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $81,200 per month, which includes depreciation of $19,000. All other fixed manufacturing overhead costs represent current cash flows. Instructions:

• Determine the cash disbursements for manufacturing overhead for November. Show your work.
• Determine the predetermined overhead rate for November. Show your work.