Question

Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,200 direct labor-hours will be required in May. The variable overhead rate is $4.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,940 per month, which includes depreciation of $6,850. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be

Answer 1

$127,710

Step-by-step explanation:

May cash disbursements = $4.10 x 8,200 + $100,940 - $6,850

= $127,710

The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $127,710