What the manufacturing overhead budget should be


Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 6,100 direct labor-hours will be required in May. The variable overhead rate is $2.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $115,000 per month, which includes depreciation of $7,550. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

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Accounting Basics: What the manufacturing overhead budget should be
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