The manufacturing overhead budget at Amrein Corporation is based on budgeted dir

Question

The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,800 direct labor-hours will be required in August. The variable overhead rate is $6 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,220 per month, which includes depreciation of $3,540. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be

Explanation / Answer

Schedule of Cash Disbursements: Amount Explanation Variable Overhead 22800 (3800*6) DLH*Rate Fixed Overhead 39680 43220-3540 Total Fixed OH-Depreciation(Non Cash) Exp Total Cash Disbursement 62480

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