The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2343008 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours 1st Quarter 10,000 2nd Quarter 9,200 3rd Quarter 9,500 4th Quarter 10,300 Budgeted direct labor-hours The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $4.50 per direct labor-hour and its total fixed manufacturing overhead is $68,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $17,000 per quarter Required 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for the upcoming fiscal year. Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead rate Fixed manufacturing overhead Total manufacturing overhead disbursements for manufacturing overhead Required 2Explanation / Answer
Manufacturing Overheads Budget Q1 Q2 Q3 Q4 Year Budgeted DLH 10000 9200 9500 10300 39000 Variable MFg OH rate 4.5 4.5 4.5 4.5 4.5 Variable Mfg Overheads 45000 41400 42750 46350 175500 Fixed Manufacturing OH 68000 68000 68000 68000 272000 Total Manufacturing OH 113000 109400 110750 114350 447500 Less: Depreciation 17000 17000 17000 17000 68000 Cash disbursement for Mfg OH 96000 92400 93750 97350 379500 Req 2. Total Manufacturing OH 379500 Divide: Total budgeted DLH 39000 OH rate per DLH 9.731