Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s production requirements. The variable manufacturing overhead rate used for budgeting purposes is $3.75 per direct labor-hour. The budgeted fixed manufacturing overhead for July is $60,000 including $9,000 of depreciation. What is the amount of budgeted cash disbursements for manufacturing overhead for July?
Multiple Choice
$106,500
$96,500
$88,500
$94,500
