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asambeis [7]
3 years ago
13

The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicat

es that 2,500 direct labor-hours will be required in August. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3,750. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Business
2 answers:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

$51,790

Explanation:

Amrein Corporation Manufacturing Overhead Budget

August

Budgeted direct labor-hours 2,500

Variable manufacturing overhead rate $5

Variable manufacturing overhead $12,500

($2,500×$5)

Fixed manufacturing overhead $43,010

Total manufacturing overhead $55,510

($43,010+$12,500)

Less depreciation 3,750

Cash disbursement for manufacturing overhead $51,790

Therefore the August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,790

Scrat [10]3 years ago
5 0

Answer:

Total cash disbursement  for overheads  $51,760

Explanation:

<em>The cash disbursement for overhead would be the sum of all the variable overhead and the fixed overhead. </em>

<em>The variable overheads would be incurred as production takes place </em>but the depreciation portion of the fixed overhead would be ignored as it does not represent a cash outflow

Cash disbursement  would be

                                                                                             $

Variable overhead- ( $5× 2,500)                                   12,500                          

Fixed overhead     - (43,010  - 3,750)                           <u> 39,260 </u>

Total cash disbursement                                              <u>   51,760 </u>

                                         

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