The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,900 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,230 per month, which includes depreciation of $3,530. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice O O O $70,530 $27,300 $67,000 $39,700

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
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The manufacturing overhead budget at Franklyn Corporation is based on
budgeted direct labor-hours. The direct labor budget indicates that 3,900 direct
labor-hours will be required in January. The variable overhead rate is $7 per direct
labor-hour. The company's budgeted fixed manufacturing overhead is $43,230
per month, which includes depreciation of $3,530. All other fixed manufacturing
overhead costs represent current cash flows. The January cash disbursements for
manufacturing overhead on the manufacturing overhead budget should be:
Multiple Choice
O
$70,530
$27,300
$67,000
$39,700
Transcribed Image Text:The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,900 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,230 per month, which includes depreciation of $3,530. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice O $70,530 $27,300 $67,000 $39,700
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