The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2521323 • 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 11,400 9,900 10,200 11,000 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.25 per direct labor-hour and its total fixed manufacturing overhead is $82,000 per quarter. The only 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.Explanation / Answer
Manufacturing overhead budget :
2) Predetermine overhead rate = 593625/42500 = 13.97 per hour
First second Third Fourth Year Direct labour hour 11400 9900 10200 11000 42500 Variable manufacturing overhead per hour 6.25 6.25 6.25 6.25 6.25 Variable manufacturing overhead 71250 61875 63750 68750 265625 Fixed manufacturing overhead 82000 82000 82000 82000 328000 Total manufacturing overhead 153250 143875 145750 150750 593625 Less: Depreciation -20500 -20500 -20500 -20500 -82000 Cash disbursement for manufacturing overhead 132750 123375 125250 130250 511625