Question

3. Manufacturing overhead budget The following is the direct labor budget for Cooper Co. Quarter 1 1.060 2 1,260 3 1,600 4 1,800 Year 5,720 Units to be produced Coopers' management estimates that it will take 2 direct labor hours to manufacture one unit of finished goods. Variable overhead is based on direct labor hours at a rate of $5 per direct labor hour. Fixed overhead is $1,850 per quarter. Required: Prepare a manufacturing overhead budget for the four quarters and the year.

complete using excel if possible

Answer 1

Solution

	Manufacturing Overhead Budget
		Q1	Q2	Q3	Q4	Year
A	Units to be produced	1060	1260	1600	1800	5720
B	Hours required per unit	2	2	2	2	2
C=A x B	Total hours required	2120	2520	3200	3600	11440
D	Variable overhead cost per hour	$                  5.00	$                   5.00	$                   5.00	$                     5.00	$                   5.00
E=D x C	Total variable overhead cost	$       10,600.00	$        12,600.00	$        16,000.00	$           18,000.00	$        57,200.00
F	Fixed Manufacturing Overhead	$         1,850.00	$          1,850.00	$           1,850.00	$             1,850.00	$           7,400.00
G=F+E	Total Manufacturing Overhead	$       12,450.00	$        14,450.00	$        17,850.00	$           19,850.00	$        64,600.00