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 8,400 8,400 8,700 8,100 Budgeted direct labor-hours The company's variable manufacturing overhead rate is $2.50 per direct labor-hour and the company's fixed manufacturing overhead is $52,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $13,000 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 $ 0 $ 0 $ $ $ 0 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 year

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Answer 1

Requirement: 1 Yuvwell Corporation Manufacturing Overhead Budget 1st quarter 2nd quarter 3rd quarter 4th quarter | Budgeted direct labor hours 8400 8400 8700 8100 Variable manufacturing overhead rate 2.50 2.50 2.50 2.50 Variable manufacturing overhead 210001 21000 21750 20250 Fixed manufacting overhead 52000 52000 520001 52000 Total manufacturing overhead 730001 730001 73750 72250 Less: Depreciation 13000 13000 13000 13000 Cash disursement for manufacturing overhead 60000 60000 60750 59250 Year 33600 2.50 84000 208000 292000 52000 240000 Requirement: 2 Total Budgeted manufacturing overhead for the year (a) Total Budgeted direct labor hours for the year (b) Predetermined overhead rateper hour for the year (a)/(b)| 292000 33600 8.69