Schuepfer Inc. bases its manufacturing overheads expense budget on budgeted unit sales. The sales budget shows 1,300 units are planned to be sold in March. The manufacturing overhead expense is $4.20 per unit. The budgeted fixed manufacturing overhead expense is $19,240 per month, which includes depreciation of $3,380 per month. The cash disbursements for manufacturing overhead expenses for March should be: A. $15,860 B. $5,460 C. $24,700 D. $21,320

Question

Walton

Business

19 July, 09:42

Schuepfer Inc. bases its manufacturing overheads expense budget on budgeted unit sales. The sales budget shows 1,300 units are planned to be sold in March. The manufacturing overhead expense is $4.20 per unit. The budgeted fixed manufacturing overhead expense is $19,240 per month, which includes depreciation of $3,380 per month. The cash disbursements for manufacturing overhead expenses for March should be: A. $15,860 B. $5,460 C. $24,700 D. $21,320

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Taniyah Bradford · Answer 1

Answer: D. $21,320

Explanation:

The cash disbursements for manufacturing overhead expenses for March should be:

budgeted fixed manufacturing overhead expense is $19,240 per month less depreciation of $3,380 per month.

= $19,240 - $3,380 = $15,860

The sales budget shows 1,300 units are planned to be sold in March. The manufacturing overhead expense is $4.20 per unit

= 1,300 x $4.20 = $5,460

Therefore $15,860 + $5,460 = $21,320