Question

exercise 8-5 (2 parts)

Exercise 8-5 Manufacturing Overhead Budget (LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 10,800 9,600 9,900 1,700 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.50 per direct labor-hour and its total fixed manufacturing overhead is $76.000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $19.000 per quarter Required: 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for the upcoming fiscal year (Round Variable manufacturing overhead rate" answers to 2 decimal places.) Yurwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year TT Variable manufacturing overhead rate Variable manufacturing overhead Forced manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overhead Required 2 >

Answer 1

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Production labor hour	10800	9600	9900	10700	41000
Variable manufacturing overhead rate per hour	5.5	5.5	5.5	5.5	5.5
Variable manufacturing overhead	59400	52800	54450	58850	225500
Fixed manufacturing overhead	76000	76000	76000	76000	304000
Total manufacturing overhead	135400	128800	130450	134850	529500
Less: Depreciation	-19000	-19000	-19000	-19000	-76000
Cash disbursement on manufacturing overhead	116400	109800	111450	115850	453500

Predetermine overhead rate = 529500/41000 = 12.91 per hour