The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,700 direct labor-hours will be required in February. The variable overhead rate is $8.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $137,740 per month, which includes depreciation of $18,140. All other fixed manufacturing overhead costs represent current cash flows. The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Question

Patience Garza

Business

13 May, 18:06

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,700 direct labor-hours will be required in February. The variable overhead rate is $8.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $137,740 per month, which includes depreciation of $18,140. 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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Madalynn Obrien · Answer 1

190,390

Explanation:

Budgeted direct labor-hours 9,400

Variable manufacturing overhead rate $ 8.60

Variable manufacturing overhead $ 80,840

Fixed manufacturing overhead 127,840

Total manufacturing overhead 208,680

Less depreciation 18,290

Cash disbursement for manufacturing overhead $ 190,390