Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 9,800 direct labor-hours will be required in May. The variable overhead rate is $3.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $117,440 per month, which includes depreciation of $10,610. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing over

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Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 9,800 direct labor-hours will be required in May. The variable overhead rate is $3.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $117,440 per month, which includes depreciation of $10,610. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

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Answer:Total overhead= $137,210Explanation:First, we need to deduct the depreciation expense from the fixed overhead. Depreciation is not a cash cost.Fixed overhead= 117,440 - 10,610= $106,830Now, the cash disbursement for total overhead:Variable overhead= 3.1*9,800= 30,380Fixed overhead= 106,830Total overhead= $137,210

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