Elision Inc., an American software development company, outsourced its support operations to Luzenza, an Asian nation, because it found that Luzenza has a large cohort of English-speaking college graduates who are ready to work for one-fourth the pay of comparable American workers. Which of the following is most likely to have influenced Elision Inc.'s decision to outsource its support operations to Luzenza?

A. Inflow of innovation
B. Growth of domestic industries
C. Reduced risk
D. Access to factors of production

Cash disbursement december= $6,586.67

Explanation:

Giving the following information:

Estimated direct labor hours= 1,600 hours

Predetermined overhead rate= $4.40 per direct labor-hour.

The company's budgeted fixed manufacturing overhead is $25,120 per month, which includes depreciation of $5,440.

First, we need to calculate the allocated overhead for the period:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4.4*1,600= $7,040

The depreciation expense is not a cash disbursement. We need to prorate the depreciation expense for December.

Monthly depreciation expense= 5,440/12= 453.33

Cash disbursement december= 7,040 - 453.33= $6,586.67