The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor hours. The direct labor budget indicates that 3,200 direct labor hours will be required in September. The variable overhead rate is $7 per direct labor hour. The company's budgeted fixed manufacturing overhead is $43,160 per month, which includes a depreciation of $3,600. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A. $22,400 B. $39,560 C. $61,960 D. $65,560

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...
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The manufacturing overhead budget at Cutchin Corporation is based on
budgeted direct labor hours. The direct labor budget indicates that 3,200
direct labor hours will be required in September. The variable overhead rate is
$7 per direct labor hour. The company's budgeted fixed manufacturing
overhead is $43,160 per month, which includes a depreciation of $3,600. All
other fixed manufacturing overhead costs represent current cash flows.
The September cash disbursements for manufacturing overhead on the
manufacturing overhead budget should be:
A. $22,400
B. $39,560
C. $61,960
D. $65,560
Transcribed Image Text:The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor hours. The direct labor budget indicates that 3,200 direct labor hours will be required in September. The variable overhead rate is $7 per direct labor hour. The company's budgeted fixed manufacturing overhead is $43,160 per month, which includes a depreciation of $3,600. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A. $22,400 B. $39,560 C. $61,960 D. $65,560
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