Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates…

Morrish Inc. bases its manufacturing overhead budget on budgeted
direct labor-hours. The direct labor budget indicates that 7,100
direct labor-hours will be required in January. The variable
overhead rate is $1.90 per direct labor-hour. The company’s
budgeted fixed manufacturing overhead is $100,370 per month, which
includes depreciation of $8,980. All other fixed manufacturing
overhead costs represent current cash flows. The January cash
disbursements for manufacturing overhead on the manufacturing
overhead budget should be:

$13,490
$113,860
$91,390
$104,880