Question - The manufacturing overhead budget of Honda Company is based on budgeted direct labor-hours. The December direct labor budget indicates that 5,800 direct labor-hours will be required in that month. The variable overhead rate is $7.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $111,360 per month, which includes depreciation of $17,400. All other fixed manufacturing overhead costs represent current cash flows.
Determine the cash disbursement for manufacturing overhead for December.
Determine the predetermined overhead rate for December.