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 2nd Quarter 3rd Quarter 4th Quarter 10,600 9.500 9,800 10,600 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.25 per direct labor-hour and its total fixed manufacturing overhead is $74,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $18,500 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 < Prey 5 of 9 !!! Next >

Answer 1

1) Manufacturing overhead budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Direct labor hour	10600	9500	9800	10600	40500
variable manufacturing overhead per hour	5.25	5.25	5.25	5.25	5.25
variable manufacturing overhead	55650	49875	51450	55650	212625
Fixed manufacturing overhead	74000	74000	74000	74000	296000
Total manufacturing overhead	129650	123875	125450	129650	508625
Less: Depreciation expense	-18500	-18500	-18500	-18500	-74000
Cash disbursement on manufacturing overhead	111150	105375	106950	111150	434625

2) Predetermine overhead rate = 508625/40500 = 12.56 per hour