Prepare the manufacturing overhead budget Enter all costs an

Prepare the manufacturing overhead budget. ?(Enter all costs and hours as a decimal to two? places, X.XX. Abbreviations? used: VOH? = variable manufacturing? overhead; FOH? = fixed manufacturing? overhead.)

Solution

First Quarter Second Quarter Third Quarter Fourth Quarter Total Budgeted production 250 360 650 350 1610 VOH cost per kit 0.5 0.5 0.5 0.5 0.5 Budgeted VOH 125 180 325 175 805 Budgeted FOH 150 150 150 150 600 Budgeted manufacturing overhead costs 275 330 475 325 1405 Direct labor hours 62.5 90 162.5 87.5 402.5 Budgeted manufacturing overhead costs 1405 Predetermined overhead allocation rate 3.49