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The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,000 direct labor-hours will be required in February. The variable overhead rate is $8.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $102,900 per month, which includes depreciation of $18,050. All other fixed manufacturing overhead costs represent current cash flows. Problem 1: The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Multiple Choice
Option 1: $61,600Option 2: $164,500Option 3: $146,450Option 4: $84,850
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