Shuck IncBases Its Manufacturing Overhead Budget on Budgeted Direct Labor-Hours

Shuck 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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