Answer:
Total overhead cash disbursement= $155,160
Explanation:
Giving the following information:
The direct labor budget indicates that 7,500 direct labor-hours will be required in February. The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,250 per month, which includes depreciation of $18,090.
First, we need to calculate the allocated variable overhead:
Variable overhead= 7,500*8.4= 63,000
Depreciation is not a cash disbursement:
Fixed overhead= 110,250 - 18,090= 92,160
Total overhead cash disbursement= 63,000 + 92,160= $155,160
