Question

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,300 direct labor-hours will be required in January. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,170 per month, which includes depreciation of $3,590. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answer 1

$65,980

Step-by-step explanation:

Calculation for 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=(3,300*$8) + ($43,170 - $3,590)

Cash disbursements for manufacturing overhead= $26,400 + $39,580

Cash disbursements for manufacturing overhead= $65,980

Therefore The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $65,980