Question
TB MC Qu. 8-178 (Static) The manufacturing overhead budget... The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor
TB MC Qu. 8-178 (Static) The manufacturing overhead budget...
The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in February. The variable overhead rate is $3.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All other fixed manufacturing overhead costs represent current cash flows.
The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
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