Ask Question
30 March, 02:53

Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in January. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $102,950 per month, which includes depreciation of $19,880. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

+3
Answers (1)
  1. 30 March, 03:15
    0
    The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $95,850

    Explanation:

    In order to calculate the the January cash disbursements for manufacturing overhead on the manufacturing overhead budget we would have to use the following formula:

    Total cash disbursement for overhead in January = Variable overhead+Cash portion of fixed manufacturing overhead

    Variable overhead = 7,100 direct labor-hours * $1.80 = $12,780

    Cash portion of fixed manufacturing overhead = $102,950 - $19,880 = $83,070

    Therefore, Total cash disbursement for overhead in January = $12,780 + $83,070

    Total cash disbursement for overhead in January = $95,850

    The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $95,850
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers