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

Dano Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,200 per month, which includes depreciation of $28,880. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 7,600 direct labor-hours will be required in December.
-The December cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $92,720
B) $121,600
C) $81,320
D) $11,400

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free