Question - The manufacturing overhead budget of Inch Corporation is based on budgeted direct labor hours. The September direct labor budget indicates that 4,400 direct labor hours will be required in that month. The variable overhead rate is $5.00 per direct labor-hours. The company's budgeted fixed manufacturing overhead is $59,400 per month, which includes depreciation of $10,560. All other fixed manufacturing overhead costs represent current cash flows.
A) Determine the cash disbursement for manufacturing overhead for September. (Show work).
B) Determine the predetermined overhead rate for September. (Show work).