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 8,800 direct labor-hours will be required in May. The variable overhead rate is $1.70 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $100,510 per month, which includes depreciation of $8,840. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$115,470

$91,670

$106,630

$14,960

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