Davis Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 97

Multiple Choice

Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for November is 7,000 hours, then the total budgeted cash disbursements for manufacturing overhead for November must be:

• A) $41,900
• B) $127,900
• C) $86,000
• D) $97,900

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