Ask Question
23 August, 21:01

The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,500 direct labor-hours will be required in August. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3,750. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

+1
Answers (1)
  1. 23 August, 23:48
    0
    Total cash disbursement for overheads $51,760

    Explanation:

    The cash disbursement for overhead would be the sum of all the variable overhead and the fixed overhead.

    The variable overheads would be incurred as production takes place but the depreciation portion of the fixed overhead would be ignored as it does not represent a cash outflow

    Cash disbursement would be

    $

    Variable overhead - ($5 * 2,500) 12,500

    Fixed overhead - (43,010 - 3,750) 39,260

    Total cash disbursement 51,760
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers