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7 September, 16:22

The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per month, which includes depreciation of $18,230. All other fixed manufacturing overhead costs represent current cash flows. The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

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  1. 7 September, 16:25
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    Cash = 87,910 + 9.3*direct labor hour

    Explanation:

    Giving the following information:

    The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per month, which includes depreciation of $18,230.

    Cash = (106,140 - 18,230) + 9.3*direct labor hour

    Cash = 87,910 + 9.3*direct labor hour
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