Manufacturing overhead budget at Cutchin Corporation
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Question
The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,500 direct labor-hours will be required in September. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,190 per month, which includes depreciation of $3,570. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be
a. $39,620
b. $67,690
c. $64,120
d. $24,500
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