Vimal Manufacturing bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor-hours will be required in June. The variable overhead rate is $5.20 per direct labor- hour. The company's budgeted fixed manufacturing overhead is $130,000 per month, which includes depreciation of $11,200. All other fixed manufacturing overhead costs represent current cash flows. What should be the June cash disbursements for manufacturing overhead on the manufacturing overhead budget?
Vimal Manufacturing bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor-hours will be required in June. The variable overhead rate is $5.20 per direct labor- hour. The company's budgeted fixed manufacturing overhead is $130,000 per month, which includes depreciation of $11,200. All other fixed manufacturing overhead costs represent current cash flows. What should be the June cash disbursements for manufacturing overhead on the manufacturing overhead budget?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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Transcribed Image Text:Vimal Manufacturing bases its manufacturing overhead
budget on budgeted direct labor-hours. The direct labor
budget indicates that 7,500 direct labor-hours will be required
in June. The variable overhead rate is $5.20 per direct labor-
hour. The company's budgeted fixed manufacturing overhead
is $130,000 per month, which includes depreciation of $11,200.
All other fixed manufacturing overhead costs represent
current cash flows.
What should be the June cash disbursements for
manufacturing overhead on the manufacturing overhead
budget?
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