The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2557710 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details conceming budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,200 8,300 8,600 8,000 The company's variable manufacturing overhead rate is $2.25 per direct labor-hour and the company's fixed manufacturing overhead is $50,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 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 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
1st quarter 2nd quarter 3rd quarter 4th quarter Year Variable manufacturing overhead 18450 18675 19350 18000 74475 Fixed manufacturing overhead 50000 50000 50000 50000 200000 Total manufacturing overhead 68450 68675 69350 68000 274475 Less depreciation 12500 12500 12500 12500 50000 Cash disbursements for manufacturing overhead 55950 56175 56850 55500 224475 2 Total budgeted manufacturing overhead for the year 274475 Budgeted direct labor-hours for the year 33100 Predetermined overhead rate for the year 8.29