The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2432590 • 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 8,000 2nd Quarter3rd Quarter 4th Quarter 7,800 Budgeted direct labor-hours 8,200 8,500 The company's variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is $48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter. Required 1. Complete 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 Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overheadExplanation / Answer
Yuvwell Corporation Manufactuirng Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted Labor Hours=(A) 8000 8200 8500 7800 32500 Variable Overhead rate=(B) $ 3.25 $ 3.25 $ 3.25 $ 3.25 $ 3.25 Variable Overhead=(C )=(A)*(B) $ 26,000.00 $ 26,650.00 $ 27,625.00 $ 25,350.00 $ 1,05,625.00 Fixed Manufacturing Overhead=(D) $ 48,000.00 $ 48,000.00 $ 48,000.00 $ 48,000.00 $ 1,92,000.00 Total Manufacturing Overhead=(F)=(C )+(D) $ 74,000.00 $ 74,650.00 $ 75,625.00 $ 73,350.00 $ 2,97,625.00 Less: Depreciation=(H) $ 16,000.00 $ 16,000.00 $ 16,000.00 $ 16,000.00 $ 64,000.00 Total Cash paid for manufacturing overhead=(F)-(H) $ 58,000.00 $ 58,650.00 $ 59,625.00 $ 57,350.00 $ 2,33,625.00 Yuvwell Corporation Company's Manufacturing Overhead Rate Total Manufacturing Overhead for the year=(A) $ 2,97,625.00 Budgeted Direct Labor Hours for the year=(B) 32500 Predetermined Overhead rate for the year=(A)/(B) $ 9.16