4. value: 2.00 points The manufacturing overhead budget at Amrein Corporation is

Question

4. value: 2.00 points The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2.200 direct labor-hours will be required in August. The variable overhead rate is $9 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,040 per month, which includes depreclation of $3,720. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: O $19,800 $62,840 O $39,320 O $59 120

Explanation / Answer

Variable manufacturing overhead = 2200*9 = 19800

Fixed manufacturing overhead = 43040

Total manufacturing overhead = 43040+19800 = 62840

Cash disbursement for manufacturing overhead = 62840-3720 = 59120

so answer is d) 59120

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