Question

The direct labour budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours: 1st 2nd 3rd 4th Quarter 11,200 Quarter 9,800 Quarter 10,900 Quarter 10,100 Budgeted direct labour-hours The company's variable manufacturing overhead rate is $6.00 per direct labour-hour and the company's fixed manufacturing overhead is $80,000 per quarter. The only non-cash item included in fixed manufacturing overhead is depreciation, which is $20.000 per quarter. Required: 1. Complete the company's manufacturing overhead budget for the upcoming fiscal year. Yuvwell Corporation Manufacturing Overhead Budget Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead

Answer 1

Manufacturing Overhead Budget
	1st Quarter	2nd	3rd	4th	Total
Variable Manufacturing Overhead	67,200	58,800	60,600	65,400	252,000
Fixed Manufacturing Overhead	80,000	80,000	80,000	80,000	320,000
Total Manufacturing Overhead	147,200	138,800	140,600	145,400	572,000
Less: Depreciation	20,000	20,000	20,000	20,000	80,000
Cash Disbursement	127,200	118,800	120,600	125,400	492,000
Total Budgeted Overhead	492,000
Budgeted labor hours	42,000
Predetermined Rate	11.7142857	per hour