Required production for 2021 is as follows:

Q1 - 4,000 units

Q2 - 6,000 units

Q3 - 10,000 units

Q4 - 7,000 units

Each unit requires 1.2 hours of direct labor to complete. The variable overhead rate is $2.40 per direct labor hour. Fixed overhead (including $4,500 of depreciation each quarter) is $23,700. What are cash disbursements for manufacturing overhead for Q1 of 2021?

• A.

  $30,720

• B.

  $39,720

• C.

  $16,020

• D.

  $28,800