Cash disbursements for manufacturing


Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,900 direct labor-hours will be required in May. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,520 per month, which includes depreciation of $8,830. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$91,690

$107,710

$16,020

$116,540

 

 

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Financial Accounting: Cash disbursements for manufacturing
Reference No:- TGS01229483

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