The manufacturing overhead budget is based on budgeted direc…
The manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 3,500 direct labor-hours will be required in November. The variable overhead rate is $7 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $43,190 per month, which includes depreciation of $3,570 a month. All variable and fixed overhead costs that can be paid in cash are paid in the month incurred. The November cash disbursements for manufacturing overhead on the manufacturing overhead budget will be: