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
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
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 5P
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