The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 2563516 • Letter: T
Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 9,000 8,700 9,000 8,400 The company's variable manufacturing overhead rate is 53.25 per direct labor-hour and the company's fixed manufacturing overhead is 558,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $14,500 per quarter Required: 1. Complete the company's manufacturing overhead budget for the upcoming fiscal yean Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Fixed Less depreciation 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
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead 29250 28275 29250 27300 114075 Fixed manufacturing overhead 58000 58000 58000 58000 232000 Total manufacturing overhead 87250 86275 87250 85300 346075 Less depreciation 14500 14500 14500 14500 58000 Cash disbursements for manufacturing overhead 72750 71775 72750 70800 288075 2 Total budgeted manufacturing overhead for the year 346075 Budgeted direct labor-hours for the year 35100 Predetermined overhead rate for the year 9.86