The direct labor budget of Yuvwell Corporation for the upcoming fiscal year cont
ID: 341708 • Letter: T
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 8,200 8,300 8,600 8,000 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $2.25 per direct labor-hour and its total 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. 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.
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Q1 Q2 Q3 Q4 Total Budgeted direct labor-hours 8,200.00 8,300.00 8,600.00 8,000.00 33,100.00 Variable predetermined manufacturing overhead 2.25 2.25 2.25 2.25 2.25 Variable manufacturing overhead a 18,450.00 18,675.00 19,350.00 18,000.00 74,475.00 total fixed manufacturing overhead b 50,000.00 50,000.00 50,000.00 50,000.00 200,000.00 Total fixed overhead = a+b 68,450.00 68,675.00 69,350.00 68,000.00 274,475.00 predetermined Variable overhead rate 2.25 2.25 2.25 2.25 2.25 predetermined fixed overhead rate 6.10 6.02 5.81 6.25 6.04 predetermined total overhead rate 8.35 8.27 8.06 8.50 8.29