The Manufacturing Overhead Budget at Franklyn Corporation Is Based on Budgeted

question 180

Multiple Choice

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

• A) $5,720
• B) $43,120
• C) $48,840
• D) $66,000

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