The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2555478 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
The company’s variable manufacturing overhead rate is $5.00 per direct labor-hour and the company’s fixed manufacturing overhead is $72,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $18,000 per quarter.
Complete the company’s manufacturing overhead budget for the upcoming fiscal year.
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 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 Budgeted direct labor-hours for the year Predetermined overhead rate for the yearExplanation / Answer
1) Complete the company’s manufacturing overhead budget for the upcoming fiscal year.
2) Predetermine overhead rate :
1st quarter 2nd quarter 3rd quarter 4th quarter Year direct labour hour 10400 9400 9700 10500 40000 Variable overhead per labour hour 5 5 5 5 5 Variable overhead 52000 47000 48500 52500 200000 Fixed overhead 72000 72000 72000 72000 288000 Total overhead 124000 119000 120500 124500 488000 Less: Depreciation (18000) (18000) (18000) (18000) (72000) Cash disbursement on manufacturing overhead 106000 101000 102500 106500 416000