Question

Exercise 9-11 (Video) Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,700, 12,500, 14,800, 16,800. Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.70; indirect labor $1.20; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $36,290; depreciation $18,530; and maintenance $13,420. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.) ATLANTA COMPANY Manufacturing Overhead Budget For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020 Quarter 1 2 3 4 Year $ $ $ $ $     Supervisory Salaries    Depreciation    Indirect Labor    Indirect Materials    Beginning Direct Materials    Variable Costs    Desired Ending Materials    Maintenance    Total Manufacturing Overhead    Total Fixed    Direct Materials Purchases    Total Materials Required    Direct Materials Per Unit    Total Pounds Needed for Production    Fixed Costs    Total Variable    Units to be Produced         Supervisory Salaries    Depreciation    Desired Ending Materials    Total Variable    Beginning Direct Materials    Direct Materials Per Unit    Total Fixed    Indirect Labor    Total Manufacturing Overhead    Direct Materials Purchases    Indirect Materials    Fixed Costs    Maintenance    Total Materials Required    Total Pounds Needed for Production    Units to be Produced    Variable Costs     Units to be ProducedFixed CostsIndirect LaborIndirect MaterialsDirect Materials Per UnitSupervisory SalariesTotal Pounds Needed for ProductionVariable CostsDirect Materials PurchasesTotal VariableMaintenanceTotal FixedTotal Manufacturing OverheadTotal Materials RequiredBeginning Direct MaterialsDepreciationDesired Ending Materials     Indirect Materials    Total Fixed    Maintenance    Supervisory Salaries    Total Manufacturing Overhead    Total Variable    Beginning Direct Materials    Total Materials Required    Units to be Produced    Total Pounds Needed for Production    Variable Costs    Depreciation    Direct Materials Purchases    Direct Materials Per Unit    Desired Ending Materials    Fixed Costs    Indirect Labor         Total Pounds Needed for Production    Direct Materials Per Unit    Maintenance    Depreciation    Direct Materials Purchases    Fixed Costs    Desired Ending Materials    Indirect Labor    Total Fixed    Total Manufacturing Overhead    Indirect Materials    Units to be Produced    Supervisory Salaries    Total Variable    Total Materials Required    Variable Costs    Beginning Direct Materials         Fixed Costs    Direct Materials Purchases    Total Variable    Indirect Labor    Total Pounds Needed for Production    Desired Ending Materials    Indirect Materials    Units to be Produced    Total Manufacturing Overhead    Depreciation    Variable Costs    Maintenance    Supervisory Salaries    Direct Materials Per Unit    Total Materials Required    Total Fixed    Beginning Direct Materials         Desired Ending Materials    Indirect Materials    Direct Materials Per Unit    Maintenance    Direct Materials Purchases    Depreciation    Units to be Produced    Total Manufacturing Overhead    Total Variable    Variable Costs    Beginning Direct Materials    Fixed Costs    Indirect Labor    Supervisory Salaries    Total Fixed    Total Materials Required    Total Pounds Needed for Production     Indirect MaterialsSupervisory SalariesFixed CostsIndirect LaborTotal FixedBeginning Direct MaterialsMaintenanceDirect Materials Per UnitDirect Materials PurchasesTotal Manufacturing OverheadDesired Ending MaterialsTotal Materials RequiredVariable CostsTotal Pounds Needed for ProductionTotal VariableDepreciationUnits to be Produced $ $ $ $ $ Direct labor hours Manufacturing overhead rate per direct labor hour $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

Ans.	ATLANTA   COMPANY
	Manufacturing Overhead Budget
	For the Year Ending December 31, 2020
		Quarters
		1	2	3	4
	Variable costs:
	Indirect materials	$11,235	$13,125	$15,540	$17,640
	Indirect labor	$19,260	$22,500	$26,640	$30,240
	Maintenance	$11,235	$13,125	$15,540	$17,640
	Total variable overhead costs (a)	$41,730	$48,750	$57,720	$65,520
	Fixed costs:
	Supervisory salaries	$36,290	$36,290	$36,290	$36,290
	Depreciation	$18,530	$18,530	$18,530	$18,530
	Maintenance	$13,420	$13,420	$13,420	$13,420
	Total fixed overhead costs (b)	$68,240	$68,240	$68,240	$68,240
	Total Manufacturing overhead (a + b)	$109,970	$116,990	$125,960	$133,760
	*Calculations for Total direct labor hours:
		Quarters
		1	2	3	4
	Units to be produced (a)	10700	12500	14800	16800
	Direct labor hours per unit (b)	1.5	1.5	1.5	1.5
	Total direct labor hours (a * b)	16050	18750	22200	25200
	*Calculations for Variable costs:    (Variable cost per direct labor hour * Total direct labor hours)
		Quarters
		1	2	3	4
	Indirect materials	16,050 * $0.70	18,750 * $0.70	22,200 * $0.70	25,200 * $0.70
	Indirect labor	16,050 * $1.20	18,750 * $1.20	22,200 * $1.20	25,200 * $1.20
	Maintenance	16,050 * $0.70	18,750 * $0.70	22,200 * $0.70	25,200 * $0.70
	*Fixed overhead costs always remain same.