Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-ho

Question

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,400 direct labor-hours will be required in August. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,470 per month, which includes depreciation of $8,880. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $10,920 $102,510 $91,590 $111,390

Explanation / Answer

August cash disbursements variable overhead (8,400*1.30)= 10920 Add:Fixed manufacturing overhead 100,470 total manufacturing overhead 111390 less:Depreciation expense -8,880 cash disbursement 102510 answer

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