Manufacturing overhead on the manufacturing overhead budget

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Reference no: EM131212795

The manufacturing overhead budget at Calendar Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,800 direct labor-hours will be required in February. The variable overhead rate is $3.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $88,400 per month, which includes depreciation of $17,800. All other fixed manufacturing overhead costs represent current cash flows. The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $110,160.00

B) $21,760.00

C) $70,600.00

D) $92,360.00

Reference no: EM131212795

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