The manufacturing overhead budget at Cutchin Corporation is based on budgeted di

Question

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,200 direct labor-hours will be required in September. The variable overhead rate is $7.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $45,120 per month, which includes depreciation of $19,410. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Explanation / Answer

3,200 direct labor-hours*The variable overhead rate is $7.40 per direct labor-hour. +manufacturing overhead is $45,120 per month-depreciation of $19,410=$49,390.

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