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Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 17,900 direct labor-hours will be required in May.

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Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 17,900 direct labor-hours will be required in May. The variable overhead rate is $1.25 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,550 per month, which includes depreciation of $8,800. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $22,375 $91.750 $114,125 O $122,925

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