The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2392566 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: Budgeted direct labor-hours 1st Quarter 8,800 2nd Quarter 8,600 3rd Quarter 8,900 4th Quarter 8 ,300 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.00 per direct labor-hour and its total fixed manufacturing overhead is $56,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $14,000 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. Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year ! Variable manufacturing overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overheadExplanation / Answer
Company's manufacturing overhead budget :
b) Predetermine overhead rate = 327800/34600 = $9.47 per labour hour
1st quarter 2nd quarter 3rd quarter 4th quarter Year Direct labour hour 8800 8600 8900 8300 34600 Variable manufacturing overhead rate 3 3 3 3 3 Variable manufacturing overhead 26400 25800 26700 24900 103800 Fixed manufacturing overhead 56000 56000 56000 56000 224000 Total manufacturing overhead 82400 81800 82700 80900 327800 Less: Depreciation -14000 -14000 -14000 -14000 -56000 Cash disbursement for manufacturing overhead 68400 67800 68700 66900 271800