The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. 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
$5,720
$43,120
$48,840
$66,000
Cash disbursements for manufacturing overhead = Variable + Fixed = (4400*1.30) + (60,280 - 17,160) = 5720 + 43,120 = 48,840 Option C is the answer |
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The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor...
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