Manufacturing overhead on the manufacturing overhead budget

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Reference no: EM13825832

The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,700 direct labor-hours will be required in January. The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per month, which includes depreciation of $18,230. All other fixed manufacturing overhead costs represent current cash flows.

The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$80,910

$168,820

$87,910

$187,050

Reference no: EM13825832

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