The october cash disbursements for manufacturing overhead, Ask an Expert

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Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October.

The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $68,800

B) $64,960

C) $14,720

D) $50,240

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Accounting Basics, Accounting

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