Which of the following is not correct regarding the manufacturing overhead budget?
A)Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
B)Manufacturing overhead costs should be broken down by cost behaviour.
C)The manufacturing overhead budget should provide a schedule of all costs of production other than direct materials and direct labour.
D)A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.

Question

Quizplus · Accepted Answer

Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead. This statement is incorrect as the total budgeted cash disbursements for manufacturing overhead should include only fixed manufacturing overhead costs as variable manufacturing overhead costs are directly related to the level of production and hence, are included in the budgeted direct materials and direct labour costs.

Which of the Following Is Not Correct Regarding the Manufacturing