I have to create factory overhead budget: I answered it but I\'m hoping I can ge
ID: 2430825 • Letter: I
Question
I have to create factory overhead budget:
I answered it but I'm hoping I can get it checked out.
INPUT AREA: DIRECT LABOR HOURS INFORMATION: FROM THE "LABOR" WORKSHEET VARIABLE OVERHEAD RATE PER DIRECT LABOR HOUR $4.50 INDIRECT LABOR PER MONTH $42,320 PROPERTY TAX PER MONTH $2,500 EQUIPMENT DEPRECIATION PER MONTH $5,000 OUTPUT AREA: FACTORY OVERHEAD BUDGET FOURTH QUARTER, 2018 OCTOBER NOVEMBER DECEMBER - - - TOTAL DIRECT LABOR HOURS NEEDED 1,160 1,207 351 VARIABLE OVERHEAD RATE $4.50 $4.50 $4.50 TOTAL VARIABLE OVERHEAD $5,220 $5,431 $1,580 FIXED OVERHEAD: INDIRECT LABOR $42,320 $42,320 $42,320 PROPERTY TAX $2,500 $2,500 $2,500 EQUIPMENT DEPRECIATION $5,000 $5,000 $5,000 TOTAL MANUFACTURING OVERHEAD $49,820 $49,820 $49,820 LESS: DEPRECIATION OF EQUIPMENT $5,000 $5,000 $5,000 TOTAL CASH OUTFLOW FOR MAN. OVERHEAD $44,820 $44,820 $44,820Explanation / Answer
Overhead budget :
October November December Labour hour needed 1160 1207 351 Variable overhead rate 4.50 4.50 4.50 Total variable overhead 5220 5432 1580 Fixed overhead Indirect labour 42320 42320 42320 Property tax 2500 2500 2500 Equipment depreciation 5000 5000 5000 Total fixed overhead 49820 49820 49820 Total manufacturing overhead 55040 55252 51400 Less: Depreciation -5000 -5000 -5000 Cash disbursement of manufacturing overhead 50040 50252 46400