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 3.900 direct labor hours Will be required in September. The variable overhead rate is $7 per direct labor hour The company's budgeted fixed manufacturing overhead is $43,230 per month, which includes depreciation of $3.530 All other fixed manufacturing overhead costs represent current cash flows The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $70,530 $27,300 $39,700 $67,000

Explanation / Answer

Cash Disbursement for manufactuirn overhead on the manufacturing overhead budget shoul be: $ 67,000

Calculation as below:

Budgeted Hours for Sep. 3900 Variable overhead rate per direct labour hours $7 Budgted fixed manufacturing overhead 43230 Depriciation include in fixed Overhead 3530 Cash Payment Variable overhead (3900*7) 27300 Fixed Overhead(43230-3530) 39700 Total total Budgeted Cash payment 67000

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