The manufacturing overhead budget at Satechi Inc. is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $60,000 per month, which includes depreciation of $24,000. All other fixed manufacturing overhead costs represent current cash flows.

The cash disbursements for manufacturing overhead on the January Cash Budget should be:

multiple choice

• $89,720

• $41,720

• $65,720

• $60,000