Question

Exercise 23-11 Your answer is partially correct. Try again. Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following Units to be produced (by qarters): 10,400, 12,200, 14,700, 17,000. Direct labor: Time is 1.5 haurs per unit. Variable overhead costs pe direct labor hour: indirect materials $o.90; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per arter; supervisory saares $37,240; depreciation 18,190. and maintenance $14,310. 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 g Overhead Budget Quarter Year Indirect Material 5 16470 19845 22950 73305 Indirect Labor 14040 28665 33150 105885 20280 23790 Maintenance

Answer 1

			1	2	3	4	year
Variable costs
indirect materials		0.9	14040	16470	19845	22950	73305
indirect labor		1.3	20280	23790	28665	33150	105885
maintenance		0.7	10920	12810	15435	17850	57015
total variable		2.9	45240	53070	63945	73950	236205
fixed costs
Supervisory salaries			37,240	37,240	37,240	37,240	148,960
Depreciation			18,190	18,190	18,190	18,190	72,760
maintenance			14,310	14,310	14,310	14,310	57,240
total fixed			69,740	69,740	69,740	69,740	278,960
total manufacturing overhead			114,980	122,810	133,685	143,690	515,165
Direct labor hours			15600	18300	22050	25500	81450
Manufacturing overhead rate							6.32
per direct labor hour