Trini Inc Bases Its Manufacturing Overhead Budget on Budgeted Direct Labor-Hours

Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $102,870.
B) $11,340.
C) $91,530.
D) $111,780.

Correct Answer:

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