The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont

Question

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 9,800 9,100 9,400 10,200 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $4.25 per direct labor-hour and its total fixed manufacturing overhead is $66,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,500 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

Explanation / Answer

1) Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead rate 4.25 4.25 4.25 4.25 4.25 Variable manufacturing overhead 41650 38675 39950 43350 163625 (4.25*9800) (4.25*9100) (4.25*9400) (4.25*10200) (38500*4.25) Fixed manufacturing overhead 66000 66000 66000 66000 264000 Total manufacturing overhead 107650 104675 105950 109350 427625 (-) Non cash items (depreciation) 16500 16500 16500 16500 66000 Cash disbursement for manufacturing overhead 91150 88175 89450 92850 361625 2) Pre-determined overhead rate = $4.25 + (264000/38500) = $11.11

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