Question

Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,800 direct labor-hours will be required in May. The variable overhead rate is $2.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $107,440 per month, which includes depreciation of $9,610. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $116,310. $18,480. $97,830. $125,920.

Answer 1

$116,310

Step-by-step explanation:

May cash disbursements = $2.10 x 8,800 + $107,440 - $9,610

= $116,310

The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $116,310