Question

Calculate the cash disbursements for manufacturing overhead for 1^st Quarter 2011 using the information below.

Production Information Cost Information:
1^st Quarter, 2011 45,000 units PDOR Per Unit: $6.50
2^nd Quarter, 2011 41,000 units
3^rd Quarter, 2011 49,000 units
4^th Quarter, 2011 38,000 units

Fixed Costs Per Quarter:

Other Fixed Costs $ 6,200

Supervisory Salaries: $90,000

Factory depreciation $35,000

	A.	$423,700
	B.	$388,700
	C.	$397,700
	D.	$382,500

Answer 1

MANUFACTURING OVERHEADS BUDGET
			Q1	Q2	Q3	Q4	TOTAL
Budgeted Production Units			45,000	41,000	49,000	38,000	173,000
Variable manufacturing OH rate per unt			6.50	6.50	6.50	6.50	6.50
Variable Manufacturing Overheads			292,500	266,500	318,500	247,000	1,124,500
Fixed Manufacturing OH:
Supervisory salaries			90000	90000	90000	90000	360000
Factory depreciation			35,000	35,000	35,000	35,000	140,000
Other factory cost			6,200	6,200	6,200	6,200	24,800
Total Fixed Manufacturing OH			131,200	131,200	131,200	131,200	524,800
Total Manufacturing Overheads			423,700	397,700	449,700	378,200	1,649,300
Less: Depreciation			35,000	35,000	35,000	35,000	140,000
Cash disbursal for Manufacturing OH			388,700	362,700	414,700	343,200	1,509,300
Answer is B. 388700