The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2529420 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerming budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 11,800 10,100 10,400 11,200 The company's variable manufacturing overhead rate is $8.75 per direct labor-hour and the company's fixed manufacturing overhead is $86,000 per quarter. The only noncash tem included in fixed manufacturing overhead is depreciation, which is $21,500 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 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 Budgeted direct labor-hours for the year Predetermined overhead rate per hour for the year Hints References eBook & ResourcesExplanation / Answer
Manufacturing overhead budget :
b) Total manufacturing overhead for the year = 724625
Budgeted direct labour hour = 43500
Predetermine overhead rate per hour = 16.66
1st quarter 2nd quarter 3rd quarter 4th quarter Year Direct labour hour 11800 10100 10400 11200 43500 Variable overhead per hour 8.75 8.75 8.75 8.75 8.75 Variable manufacturing overhead 103250 88375 91000 98000 380625 Fixed manufacturing overhead 86000 86000 86000 86000 344000 Total manufacturing overhead 189250 174375 177000 184000 724625 Less: Depreciation -21500 -21500 -21500 -21500 -86000 Cash disbursement on manufacturing overhead 167750 152875 155500 162500 638625