The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,500 direct labor-hours will be required in August. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3,750. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$51,790

Explanation:

Amrein Corporation Manufacturing Overhead Budget

August

Budgeted direct labor-hours 2,500

Variable manufacturing overhead rate $5

Variable manufacturing overhead $12,500

($2,500×$5)

Fixed manufacturing overhead $43,010

Total manufacturing overhead $55,510

($43,010+$12,500)

Less depreciation 3,750

Cash disbursement for manufacturing overhead $51,790

Therefore the August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,790

Total cash disbursement  for overheads  $51,760

Explanation:

The cash disbursement for overhead would be the sum of all the variable overhead and the fixed overhead.

The variable overheads would be incurred as production takes place but the depreciation portion of the fixed overhead would be ignored as it does not represent a cash outflow

Cash disbursement  would be

                                                                                             $

Variable overhead- ( $5× 2,500)                                   12,500                          

Fixed overhead     - (43,010  - 3,750)                           39,260

Total cash disbursement                                                 51,760

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )