Question
Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in May.
Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in May. The variable overhead rate is $1.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,390 per month, which includes depreciation of $8,960. 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
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$112,800
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$103,840
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$91,430
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$12,410
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