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 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hoursS 10,600 9,500 9,800 10,600 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. 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 ear Budgeted direct labor-hours for the year Predetermined overhead rate for the year

Solution

1) Manufacturing overhead Budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Variable manufacturing budget 55650 49875 51450 55650 Fixed manufacturing budget 74,000 74,000 74,000 74,000 total manufacturing budget 129650 123875 125450 129650 less depreciation 18,500 18,500 18,500 18,500 Cash disbursements for manufacturing overhead 111,150 105,375 106,950 111,150 434,625 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