Question

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

The company's variable manufacturing overhead rate is $325 per direct labour hour and the company's fixed manufacturing overhead is $48,000 per quarter. The only noncash item included in the fixed manufacturing overhead is depreciation, which is $16,000 per quarter. All expenses are paid in the period incurred 

Required:

 1. Construct 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 overheads) for the upcoming fiscal year (Round your answer to 2 decimal places.) 

Answer 1

1
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted direct labor hours	8000	8200	8500	7800	32500
Variable manufacturing overhead rate	3.25	3.25	3.25	3.25	3.25
Variable manufacturing overhead	26000	26650	27625	25350	105625
Fixed manufacturing overhead	48000	48000	48000	48000	192000
Total manufacturing overhead	74000	74650	75625	73350	297625
Deduct depreciation	16000	16000	16000	16000	64000
Cash disbursements for manufacturing overhead	58000	58650	59625	57350	233625
2
Total budgeted manufacturing overhead for the year	297625
Budgeted direct labor-hours for the year	32500
Manufacturing overhead rate	9.16