The direct labor budget of Yuvwell Corporation for the upcom

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

The company’s variable manufacturing overhead rate is $5.25 per direct labor-hour and the company’s fixed manufacturing overhead is $74,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $18,500 per quarter.

Complete the company’s manufacturing overhead budget for the upcoming fiscal year.

       

Compute the company\'s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.

     

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

Solution

1 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead 55650 49875 51450 55650 212625 Fixed manufacturing overhead 74000 74000 74000 74000 296000 Total manufacturing overhead 129650 123875 125450 129650 508625 Less depreciation 18500 18500 18500 18500 74000 Cash disbursements for manufacturing overhead 111150 105375 106950 111150 434625 2 Total budgeted manufacturing overhead for the year 508625 Budgeted direct labor-hours for the year 40500 Predetermined overhead rate for the year 12.56