6 variable overhead rate is $9 per direct Corporation is based on budgeted direc

Question

6 variable overhead rate is $9 per direct Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3.400 d costs represent current cash flows. The January cash disbursements for manufacturing overhead on the mapufacturing overhead budget should be: labor-hour. The companys budgeted fixed manufacturing overhead is $43,180 per month, which includes depr budgeted fixed direct labor-hours will be required in January. The eciation of $3.580. All other fixed manufacturing Multiple Cholce $73.780 $30,600 $70,200 $39,600

Explanation / Answer

answer

given that direct labor hours = 3400

variable overhead = 9

manufacturing overhead = 43180  

depreciation = 3580

distrubusement of manufacturing over head

= varaiable cost - fixed cash overheads

= ( 3400 * 9 ) + ( 43180 - 3580 )

= 30600 + 39600

= 70200

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