Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following.

Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000.

Direct labor quantity standard is 1.5 direct labor hours per unit.

Variable overhead costs per direct labor hour total to $2.50.

Fixed overhead costs per quarter total to $62,000

Instructions

a. Prepare the manufacturing overhead budget for 2017 by quarters.

b.What is the pre-determined FOH rate based on direct labor hours?

c. How much fixed overhead will be applied in the first quarter?