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1. Manufacturing Overhead Budget (LO 9-6)

   The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor-hours.

   1^stquarter 2^ndquarter 3^rdquarter 4^thquarter

   Budgeted directlabor-hours.5,000 4,800 5,200 5,400

   The companys variable manufacturing overhead rate is $1.75 per direct labor-hour and the companys fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.

   Required:

   1. Construct the companys manufacturing overhead budget for the upcoming fiscal year.
   2. Compute the companys manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.