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The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget in

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. 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 

  • $5,720 

  • $43,120 

  • $48,840 

  • $66,000

business   accounting   
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✔ Recommended Answer
Answer #1

Cash disbursements for manufacturing overhead

= Variable + Fixed

= (4400*1.30) + (60,280 - 17,160)

= 5720 + 43,120

= 48,840

Option C is the answer
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