The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2553334 • 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 11,000 2nd Quarter 9,700 3rd Quarter 10,000 4th Quarter 10,800 Budgeted direct labor-hours The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.75 per direct labor-hour and its total fixed manufacturing overhead is $78,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $19,500 per quarter 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 Required 1Required 2 Prepare 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 rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overheadExplanation / Answer
1st quarter 2nd quarter 3rd quarter 4th quarter Year Budgeted direct labor-hours 11000 9700 10000 10800 41500 Variable overhead rate 5.75 5.75 5.75 5.75 5.75 Variable manufacturing overhead 63250 55775 57500 62100 238625 Fixed manufacturing overhead 78000 78000 78000 78000 312000 Total manufacturing overhead 141250 133775 135500 140100 550625 Less depreciation 19500 19500 19500 19500 78000 Cash disbursements for manufacturing overhead 121750 114275 116000 120600 472625 2 Manufacturing overhead rate for the year=550625/41500= $13.27