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Vitek1552 [10]
3 years ago
11

Overhead expenses are budgeted at $2,000 per month. Included in the $2,000 are $500 of monthly depreciation expense and $200 of

allocated expenses related to the insurance premium that is paid in September. What is the cash outflow for overhead for the month of May
Business
1 answer:
kvv77 [185]3 years ago
6 0

Answer:

$1,300

Explanation:

Given that,

Budgeted Overhead expenses = $2,000 per month

monthly depreciation expense = $500

Allocated expenses related to the insurance premium = $200

Non-cash expenses:

= monthly depreciation expense + Allocated expenses related to the insurance premium

= $500 + $200

= $700

Cash outflow for overhead for the month of May:

= Budgeted Overhead expenses - Non-cash expenses

= $2,000 - $700

= $1,300

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