The manufacturing overhead budget at Rosco Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2500 direct labor-hours will be required in January. 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 $3750. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

the  cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,760

Explanation:

The computation of the cash disbursements for manufacturing overhead is as follows

= company's budgeted fixed manufacturing overhead - depreciation + variable manufacturing overhead

= 2,500 direct labor hours × $5 - $3,750 + $43,010

= $12,500 + $39,260

= $51,760

Hence, the  cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,760

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.