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Problem 1: Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October. The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
a. $68,800
b. $64,960
c. $14,720
d. $50,240
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