Question

nu Manjulacturing Overhead Budgets (L02] The Bakery Department of Culbert Dessert Corporation has submitted the following forecast of fruit pies to be produced by quarter for the upcoming fiscal year. Units to be produced First Quarter 9,800 Second Quarter 12,800 Third Quarter 10,800 Fourth Quarter 14,800 Each unit requires 0.50 direct labour-hours, and direct labour-hour workers are paid $9.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labour-hour. The fixed manufacturing overhead is $27.500 per quarter. The only non-cash element of manufacturing overhead is depreciation, which is $7.900 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced Culbert Dessert Corporation Direct Labour Budget First Second Third Quarter Quarter Quarter Fourth Quarter Year Units to be produced Direct labour time per unit (hours) Total direct labour-hours needed Direct labour cost per hour Total direct labour cost

Answer 1

Direct labor budget
	First Quarter	Second quarter	Third quarter	Fourth quarter	Year
Units to be produced	9800	12800	10800	14800	48200
Direct labor time per unit (hours)	0.5	0.5	0.5	0.5	0.5
Total direct labor hours needed	4900	6400	5400	7400	24100
Direct labor cost per hour	9	9	9	9	9
Total direct labor cost	44100	57600	48600	66600	216900
Manufacturing overhead budget
	First Quarter	Second quarter	Third quarter	Fourth quarter	Year
Budgeted direct labour hours	4900	6400	5400	7400	24100
Variable overhead rate	1.5	1.5	1.5	1.5	1.5
Variable manufacturing overhead	7350	9600	8100	11100	36150
Fixed manufacturing overhead	27500	27500	27500	27500	27500
Total manufacturing overhead	34850	37100	35600	38600	63650
Depreciation	7900	7900	7900	7900	7900
Cash disbursements for manufacturing overhead	26950	29200	27700	30700	114550