Haylock Incorporated Bases Its Manufacturing Overhead Budget on Budgeted Direct

question 198

Multiple Choice

Haylock Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,600 direct labor-hours will be required in August. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,420 per month, which includes depreciation of $8,930. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

• A) $10,640
• B) $102,130
• C) $91,490
• D) $111,060

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