Answer: D. $21,320
Explanation:
The cash disbursements for manufacturing overhead expenses for March should be :
budgeted fixed manufacturing overhead expense is $19,240 per month less depreciation of $3,380 per month.
= $19,240 - $3,380 = $15,860
The sales budget shows 1,300 units are planned to be sold in March. The manufacturing overhead expense is $4.20 per unit
= 1,300 x $4.20 = $5,460
Therefore $15,860 + $5,460 = $21,320
