The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,900 direct labor-hours will be required in May. The variable overhead rate is $9.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $112,970 per month, which includes depreciation of $18,170. All other fixed manufacturing overhead costs represent current cash flows.
-The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A) $75,050
B) $188,020
C) $94,800
D) $169,850
Correct Answer:
Verified
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