Question

2 Direct labor budet ABC Company plans to all within a limited size range identical. The labor rate for machine operators is y plans to produce a number of plastic pails during the budget period. The pails are med sine range, so the amount of processing labor related to each one is nearly he labor routing for each pailis 0.1 hours per pail for the muchine operator. The labor the operators is 525 per direct labor hour. Production for each quarter is as follows: Quarter ! Quarter 2 Quarter 3 Quarter 4 Product A (units) 6,500 7,000 5,800 9,300 Required: Prepare a direct labor budget for the four quarters and the year. Units to be produced Direct labor hours per unit Total hours Direct labor rate Direct labor cost 3. Manufacturing overhead budget The following is the direct labor budget for XYZ Co. 2 Quarter Units to be produced 4 1,950 1,600 1,270 2,900 XYZ Co management estimated that the time required to manufacture one unit of finished goods is .25 direct labor hours. Variable overhead is based on direct labor hours at a rate of $7 per direct labor hour. Fixed overhead is $3,650 per quarter. Required : Prepare a manufacturing overhead budget for the four quarters and the year. Units to be produced Direct labor hours per unit Total hours Variable overhead rate Variable overhead Fixed Overhead Total Overhead

Answer 1

Answer-2)-

ABC COMPANY
Direct Labor Budget
Particulars	Quarter 1	Quarter 2	Quarter 3	Quarter 4	YEAR
Budgeted Production units (a)	6500	7000	5800	9300	28600
Direct labor hours per unit (b)	0.1	0.1	0.1	0.1	0.1
Total direct labor hours (c=a*b)	650	700	580	930	2860
Wage per direct labor hour (d)	$25	$25	$25	$25	$25
Total direct labor in $ (e=c*d)	16250	17500	14500	23250	71500

3)-

XYZ CO.
Manufacturing Overhead Budget
For the year
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Units to be produced (a)	1600	1270	2900	1950	7720
Time hour per unit (b)	.25 hours	.25 hours	.25 hours	.25 hours	.25 hours
Direct labor hours (c=a*b)	400	317.5	725	487.5	1930
Variable costs:-
Variable overhead @ $7 per hour	2800	2222.5	5075	3412.5	13510
Total variable costs (d) $	2800	2222.5	5075	3412.5	13510
Fixed costs:-
Fixed overhead	3650	3650	3650	3650	14600
Total fixed costs (e) $	3650	3650	3650	3650	14600
Total overhead (f=d+e) $	6450	5872.5	8725	7062.5	28110