Problem:
Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.2 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $40,330 per month, which includes depreciation of $12,370. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,700 direct labor-hours will be required in April.
The April cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: