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Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year....

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Accounting

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $6.80 per direct labor-hour; the budgeted fixed manufacturing overhead is $72,000 per month, of which $20,000 is factory depreciation.

If the budgeted direct labor time for November is 5,000 hours, then the total budgeted cash disbursements for November must be:

a. $54,000 b. $52,000 c. $106,000 d. $86,000. Please show work and explain.

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