Question

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in August. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,540 per month, which includes depreciation of $8,810. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answer 1

Answer:

Check the explanation

Explanation:

Calculate august cash disbursement for manufacturing budget :

 August

Direct labour hour                                                          8000

Variable overhead per hour                                            1.40

Variable manufacturing overhead                                11200

Fixed manufacturing overhead                                   100540

Total manufacturing overhead                                    111740

Less : Depreciation                                                       -8810

Cash disbursement for manufacturing overhead    102930