Question

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: Budgeted direct labor-hours 1st Quarter 11,400 2nd Quarter 9,900 3rd Quarter 10,200 4th Quarter 11,000 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.25 per direct labor-hour and its total fixed manufacturing overhead is $82,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $20,500 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.) Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overhead < Required 1 Required 2 >

Please don't leave out Required 2.

Answer 1

Manufacturing overhead budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Production labor hour	11400	9900	10200	11000	42500
Variable manufacturing overhead rate	6.25	6.25	6.25	6.25	6.25
variable manufacturing overhead	71250	61875	63750	68750	265625
Fixed manufacturing overhead	82000	82000	82000	82000	328000
Total manufacturing overhead	153250	143875	145750	150750	593625
Less: Depreciation	-20500	-20500	-20500	-20500	-82000
cash disbursement for manufacturing overhead	132750	123375	125250	130250	511625

Predetermine manufacturing overhead rate = 593625/42500 = 13.97 per hour