Question

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,100, 12, 100, 14,200, 16,700. Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.60. Fixed overhead costs per quarter: supervisory salaries $38,890; depreciation $19,570; and maintenance $13,090. 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 Quarter Direct labor hours Manufacturing overhead rate per direct labor hour

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Atlanta
Workings
Direct Labor Hours	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Year	Note
Units to be produced	10,100.00	12,100.00	14,200.00	16,700.00	53,100.00	A
Direct Labor Hour per unit	1.50	1.50	1.50	1.50		B
Total Direct Labor Hours	15,150.00	18,150.00	21,300.00	25,050.00	79,650.00	C=A*B
Indirect Materials cost per Direct Labor Hour	0.80	0.80	0.80	0.80		D
Indirect Materials cost	12,120.00	14,520.00	17,040.00	20,040.00	63,720.00	E=D*C
Indirect Labor cost per Direct Labor Hour	1.20	1.20	1.20	1.20		F
Indirect Labor cost	18,180.00	21,780.00	25,560.00	30,060.00	95,580.00	G=F*C
Maintenance cost per Direct Labor Hour	0.60	0.60	0.60	0.60		H
Maintenance cost	9,090.00	10,890.00	12,780.00	15,030.00	47,790.00	I=H*C
Final Answer
Manufacturing Overhead Budget	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Year
Variable costs
Indirect Materials	12,120.00	14,520.00	17,040.00	20,040.00	63,720.00	See E
Indirect Labor	18,180.00	21,780.00	25,560.00	30,060.00	95,580.00	See G
Maintenance	9,090.00	10,890.00	12,780.00	15,030.00	47,790.00	See I
Total Variable	39,390.00	47,190.00	55,380.00	65,130.00	207,090.00
Fixed costs
Supervisor salaries	38,890.00	38,890.00	38,890.00	38,890.00	155,560.00
Depreciation	19,570.00	19,570.00	19,570.00	19,570.00	78,280.00
Maintenance	13,090.00	13,090.00	13,090.00	13,090.00	52,360.00
Total Fixed Overhead costs	71,550.00	71,550.00	71,550.00	71,550.00	286,200.00
Total manufacturing overhead	110,940.00	118,740.00	126,930.00	136,680.00	493,290.00
Direct Labor Hours	15,150.00	18,150.00	21,300.00	25,050.00	79,650.00	See C
Manufacturing overhead rate per direct labor hour					6.19	N=M/C