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The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,200 direct labor-hours will be required

The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,200 direct labor-hours will be required in August. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,060 per month, which includes depreciation of $3,700. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$54,760

$39,360

$15,400

$58,460

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