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What january cash disbursements for manufacturing overhead

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Reference no: EM132761598

Problem 1: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,000 direct labor-hours will be required in January. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,140 per month, which includes depreciation of $3,620. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Multiple Choice

Option 1: $39,520
Option 2: $15,000
Option 3: $54,520
Option 4: $58,140

Reference no: EM132761598

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