The shareholders’ equity of MLS Enterprises includes $300 million of no par common stock and $600 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $74 million in 2021 after paying $32 million cash dividends in both 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

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