Question

Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following Units to be produced by quarters): 10,200, 12,400, 34,700, 16,700 Direct labor: Time is 1.6 hours per unit. Variable overhead costs per direct labor hour indirect materiais $0.80 indirect labor $1.30; and maintenance $0.60 Foed overhead costs per quarter Servery lares $3.320, depreciation $18,770; and maintenance $14.330 Prepare the manufacturing overhead budget for the year, showing quarterly data (Round overhead rate to 2 decimal places, 1.25. List variable ex fore Mixed expense) ATLANTA COMPANY Manufacturing Overhead Budget Quarter

Answer 1

ATLANTA COMPANY
Manufacturing Overhead Budget
For the year ended December 31, 2017
	Quarter
	1	2	3	4	Year
Variable costs
Indirect materials [ Direct labor hours * 0.80 ]	13056	15872	18816	21376	69120
Indirect labor [ Direct labor hours * 1.30 ]	21216	25792	30576	34736	112320
Maintenance [ Direct labor hours * 0.60 ]	9792	11904	14112	16032	51840
Total variable	44064	53568	63504	72144	233280
Fixed costs
Supervisory salaries	35320	35320	35320	35320	141280
Depreciation	18770	18770	18770	18770	75080
Maintenance	14330	14330	14330	14330	57320
Total fixed	68420	68420	68420	68420	273680
Total manufacturing overhead	112484	121988	131924	140564	506960
Direct labor hours [ Units to be produced * Direct labor hours per unit ]	16320	19840	23520	26720	86400
Manufacturing overhead rate per direct labor hour					5.87