Manufacturing overhead costs represent current cash flows

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Reference no: EM131211044

The manufacturing overhead budget at Calander Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 5,500 direct labor-hours will be required in February. The variable overhead rate is $4.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $66,000 per month, which includes depreciation of $17,300. All other fixed manufacturing overhead costs represent current cash flows.

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

$89,650.00

$48,700.00

$72,350.00

$23,650.00

Reference no: EM131211044

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