Question
The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,800 direct labor-hours will be required
The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,800 direct labor-hours will be required in February. The variable overhead rate is $8.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $141,120 per month, which includes depreciation of $18,130. All other fixed manufacturing overhead costs represent current cash flows.
The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Multiple Choice
$80,360
$221,480
$122,990
$203,350
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