Davis corporation is preparing its manufacturing overhead budget for the fourth quarter of the year. the budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation. if the budgeted direct labor time for november is 7,000 hours, then the total budgeted cash disbursements for manufacturing overhead for november must be:

The total budgeted cash disbursements for manufacturing overhead for November must be  $97,900

Explanation:

The steps to compute the total budgeted cash disbursements is shown below:

Step 1 : Calculation of fixed manufacturing overhead without considering depreciation

= Fixed manufacturing overhead - Depreciation

= $116,000 - $30,000

= $86,000

Step 2 : Now calculate the budgeted variable manufacturing cost

= Budgeted direct labor hours × overhead rate

= 7,000 × $1.70

= $11,900

Step 3 : Add Step 1 and Step 2

So, $86000 + $11,900 = $97,900

Hence,  the total budgeted cash disbursements for manufacturing overhead for November must be  $97,900

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