Haylock Inc

Haylock Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The direct labor budget indicates that 5,600 direct labor-hours will be required in August.The variable overhead rate is $5.40 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $69,440 per month,which includes depreciation of $15,680.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) $99,680
B) $84,000
C) $53,760
D) $30,240

Correct Answer:

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