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:

Respuesta :

Answer:

$48,840

Explanation:

The computation of the cash disbursements for manufacturing overhead on the manufacturing overhead is shown below:

= Variable overhead + fixed manufacturing overhead

where,

Variable overhead is

= 4,400 direct labor hours × $1.30 per direct labor hours

= $5,720

And, the fixed manufacturing overhead is

= Budgeted fixed manufacturing overhead - depreciation expense

= $60,280 - $17,160

= $43,120

So, the cash disbursements is

= $5,720 + $43,120

= $48,840