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

Question

Quizplus · Accepted Answer

Non-cash charges like depreciation are not added to the total budgeted manufacturing overhead to determine expected cash disbursements for manufacturing overhead as they do not involve cash outflows. Only cash expenses such as utility bills and direct labor costs are considered in determining the expected cash disbursements for manufacturing overhead.

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