Question

he manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,600 direct labor-hours will be required in January. The variable overhead rate is $4 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,200 per month, which includes depreciation of $3,560. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $54,040 $39,640 $14,400 $57,600

Answer 1

Answer:

$54,040

Explanation:

Calculation to determine what The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Using this formula

Cash disbursements for manufacturing overhead= Variable + Fixed

Let plug in the formula

Cash disbursements for manufacturing overhead= (3600*4) + (43,200 - 3,560)

Cash disbursements for manufacturing overhead= $14,400 + $39,640

Cash disbursements for manufacturing overhead= $54,040

Therefore The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:$54,040