Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in August. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,540 per month, which includes depreciation of $8,810. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Question

Business

Journey Faulkner

24 August, 17:47

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in August. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,540 per month, which includes depreciation of $8,810. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

+4

Answers (1)

Know the Answer?

Laylah Morgan · Answer 1

Check the explanation

Explanation:

Calculate august cash disbursement for manufacturing budget:

August

Direct labour hour 8000

Variable overhead per hour 1.40

Variable manufacturing overhead 11200

Fixed manufacturing overhead 100540

Total manufacturing overhead 111740

Less : Depreciation - 8810

Cash disbursement for manufacturing overhead 102930