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 9,300 direct labor-hours will be required in May. The variable overhead rate is $9.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,020 per month, which includes depreciation of $18,210. All other fixed manufacturing overhead costs represent current cash flows.

The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,300 direct labor-hours will be required in May. The variable overhead rate is $9.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,020 per month, which includes depreciation of $18,210. All other fixed manufacturing overhead costs represent current cash flows.

Explanation / Answer

The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be= 9,300 direct labor-hours*$9.90 per direct labor-hour+fixed manufacturing overhead is $106,020 per month-non cash expense depreciation of $18,210. =$179,880.

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