Question

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,300 direct labor-hours will be required in January. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,170 per month, which includes depreciation of $3,590. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answer 1

Ans:

Manufacturing Overhead Budget

Budgeted direct labor-hours	3,3 00
Variable manufacturing overhead rate	× $8
Variable manufacturing overhead	$26400
Fixed manufacturing overhead	$43,170
Total manufacturing overhead	$69,570
Less depreciation	$3,590
Cash disbursement for manufacturing overhead	$65,980