Keyser Company is preparing its manufacturing overhead budget for 2016. Relevant data are as follows:
1. Units to be produced (by quarters): 10,000, 12,000, 15,000, 18,000
2. Direct labour: 1.5 hours per unit
3. Variable overhead costs per direct labour hour: indirect materials $0.70; indirect labour $1.20; and maintenance $0.50
4. Fixed overhead costs per quarter: supervisory salaries $35,000; depreciation $16,000; and maintenance $15,000
Instructions
Prepare the manufacturing overhead budget for the year, showing quarterly data.