number the workers are pald for 450o hours anyway Any hours

number, the workers are pald for 4,50o hours anyway. Any hours worked in excess Of 4,5UU hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour EXERCISE 9-5 Manufacturing Overhead Budget [LO2] The direct labour budget of Small Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours: First Quarter Quartor Quarter Quarter Third Fourth Budgeted direct labour-hours 5,000 4800 5,200 5400 The company\'s variable manufacturing overhead rate is $1.75 per direct labour-hour, and the company\'s fixed manufacturing overhead is $35,000 per quarter. The only non-cash item included in the fixed manufacturing overhead is depreciation, which is $15,000 per quarter. Required: 1. Prepare the company\'s manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company\'s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent EXERCISE 9-6 Selling and Administrative Expense Budget [LO2] The budgeted unit sales of Hirst Company for the upcoming fiscal year are provided below: Third Fourth QuarterQuarter Quarter Quarter Se cond First Second

Solution

1 Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead 8750 8400 9100 9450 35700 Fixed manufacturing overhead 35000 35000 35000 35000 140000 Total manufacturing overhead 43750 43400 44100 44450 175700 Less depreciation 15000 15000 15000 15000 60000 Cash disbursements for manufacturing overhead 28750 28400 29100 29450 115700 2 Total budgeted manufacturing overhead for the year 175700 Budgeted direct labor-hours for the year 20400 Predetermined overhead rate for the year 8.61