Ask Question
28 December, 11:34

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,800 direct labor-hours will be required in August. The variable overhead rate is $1.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

+1
Answers (1)
  1. 28 December, 11:50
    0
    Total cash = $101,130

    Explanation:

    Giving the following information:

    Estimated direct labor hours = 7,800

    The variable overhead rate is $1.20 per direct labor-hour.

    The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790.

    We need to deduct the depreciation expense because it is not a cash disbursement.

    Cash disbursement:

    Variable overhead = 7,800*1.2 = $9,360

    Fixed overhead = (100,560 - 8,790) = $91,770

    Total cash = $101,130
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,800 direct ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers