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The manufacturing overhead budget at Rotring Corporation is based on budgeted direct labor-hours. The direct...

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Accounting

The manufacturing overhead budget at Rotring Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Manufacturing Overhead Budget:

September

Budgeted direct labor-hours

Variable manufacturing overhead rate

Variable manufacturing overhead

Fixed manufacturing overhead

Total manufacturing overhead

Depreciation

Cash disbursement for manufacturing overhead

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