The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2552294 • 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 9,400 2nd Quarter 8,900 3rd Quarter 9,200 4th Quart 10,000 Budgeted direct labor-hours The company's variable manufacturing overhead rate is $3.75 per direct labor-hour and the company's fixed manufacturing overhead is $62,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,500 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 QuarterYear 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 year Budgeted direct labor-hours for the year Predetermined overhead rate per hour for the yearExplanation / Answer
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Yuvwell Corporation Manufacturing Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead $3.75 x 9400 = $35,250 $3.75 x 8900 = $33,375 $3.75 x 9200 = $34,500 $3.75 x 10000 = $37,500 $140,625 Fixed manufacturing overhead $62,000 $62,000 $62,000 $62,000 $248,000 Total manufacturing overhead $97,250 $95,375 $96,500 $99,500 $388,625 Less: Depreciation $15,500 $15,500 $15,500 $15,500 $62,000 Cash disbursements for manufacturing overhead $81,750 $79,875 $81,000 $84,000 $326,626