The direct labor budget of Yuvwell labor-hours: n for the upcoming fiscal year c
ID: 2561728 • Letter: T
Question
The direct labor budget of Yuvwell labor-hours: n for the upcoming fiscal year contains the following details concerning budgeted direct 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 10,400 9,400 9,700 10,500 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.00 per direct labor-hour and its total 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. 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 Manufacturing Overhead Budget 4th Quarter Year 1st 2nd Quarter Quarter Total overnead Cash disbursements for manufacturing overhead Required 2>Explanation / Answer
Req 1:Manufacturing overhead budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Labour hours 10,400 9400 9700 10500 40,000 Variable manufacturing overhead rate per hour 5 5 5 5 5 Variable manufacturing overheads 52000 47000 48500 52500 200000 Fixed Manufacturing overheads 72000 72000 72000 72000 288000 Total manufacturing overhead 124000 119000 120500 124500 488000 Cash Disbursement for manufacturing overheads 106000 101000 102500 106500 416000 (Total overheads - non cash items i.e. 18000 per quarter) Req 2: Predetermined Overhead rate for fiscal rate Predetermined overhead rate = Total overheads / Total number of labour hours ( $ 488,000 / 40,000 labour hours) = $ 12.20 per labour hour