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 11,400 9,900 10,200 11,000 The company's variable manufacturing overhead rate is $6.25 per direct labor-hour and the company's fixed manufacturing overhead is $82,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $20,500 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 QuarterYear Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead 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 ar Budgeted direct labor-hours for the year Predetermined overhead rate per hour for the year

Answer 1

OVERHEAD BUDGET :

	1St quarter	2nd quarter	3rd quarter	4th quarter	year
direct labour hours	11400	9900	10200	11000	42500
rate per labour hour	6.25	6.25	6.25	6.25	6.25
Variable Manufacturing overhead	71250	61875	63750	68750	265625
Fixed manufacturing overhead	82000	82000	82000	82000	328000
Total manufacturing overhead	153250	143875	145750	150750	593625
Less: Depreciation	(20500)	(20500)	(20500)	(20500)	(82000)
Cash payment on manufacturing overhead	132750	123375	125250	130250	511625

COMPANY'S MANUFACTURING OVERHEAD RATE :

Total budgeted manufacturing overhead	593625
Total budgeted labour hour	42500
Manufacturing overhead rate	13.97 per DLH