The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2508270 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
5. The company’s variable manufacturing overhead rate is $4.50 per direct labor-hour and the company’s 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.
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
1st Quarter 2nd Quarter 3rd Quarter 9,200 4th Quarter 10,300 Budgeted direct labor-hours 10,000 9,500 The company's variable manufacturing overhead rate is $4.50 per direct labor-hour and the company's 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. 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 overhead 2. Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year Total budgeted manufacturing overhead for the ear Budgeted direct labor-hours for the year Predetermined overhead rate for the yearExplanation / Answer
1 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead 45000 41400 42750 46350 175500 Fixed manufacturing overhead 68000 68000 68000 68000 272000 Total manufacturing overhead 113000 109400 110750 114350 447500 Less depreciation 17000 17000 17000 17000 68000 Cash disbursements for manufacturing overhead 96000 92400 93750 97350 379500 2 Total budgeted manufacturing overhead for the year 447500 Budgeted direct labor-hours for the year 39000 Predetermined overhead rate for the year 11.47