The manufacturing overhead budget at franklyn corporation is based on budgeted direct labor-hours. the direct labor budget indicates that 4,400 direct labor-hours will be required in january. the variable overhead rate is $1.30 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. all other fixed manufacturing overhead costs represent current cash flows. the january cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?