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Disbursements for manufacturing overhead

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Question: The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,600 direct labor-hours will be required in August. The variable overhead rate is $4 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,200 per month, which includes depreciation of $3,560. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$39,640

$14,400

$54,040

$57,600

Reference no: EM131749077

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