In the manufacturing overhead budget, the non-cash charges (such as depreciation) are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead.

Question

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Non-cash charges like depreciation do not require actual cash outflow, so they are subtracted from the total manufacturing overhead to calculate the cash disbursements.

In the Manufacturing Overhead Budget, the Non-Cash Charges (Such as Depreciation)