The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2519545 • 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 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,000 8,200 8,500 7,800 The company's variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is S48,000 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 QuarterYear Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overheacd 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) Manufacturing overhead budget :
2) Total budgeted manufacturing overhead for the year = 297625
Budgeted direct labour hour for the year = 32500 hour
Predetermine overhead rate for the year = 9.16 per labour hour
1st quarter 2nd quarter 3rd quarter 4th quarter Year direct labour hours 8000 8200 8500 7800 32500 Variable manufacturing overhead per hour 3.25 3.25 3.25 3.25 3.25 Variable manufacturing overhead 26000 26650 27625 25350 105625 Fixed manufacturing overhead 48000 48000 48000 48000 192000 Total manufacturing overhead 74000 74650 75625 73350 297625 Less: Depreciation -16000 -16000 -16000 -16000 -64000 Cash disbursement of manufacturing overhead 58000 58650 59625 57350 233625