The manufacturing overhead budget at Mahapatra Corporation is based on budgeted

Question

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor hours. The direct labor budget indicates that 7,900 direct labor-hours will be required in May. The variable overhead rate is $9.50 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $112,970 per month, which includes depreciation of $18,170. All other fixed manufacturing overhead costs represents current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A) $75,050 B)$188,020 C)$94,800 D)$169,850

Explanation / Answer

A) $75,050

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