Buff Company Budgeted Income Statement for the Year Ending December 31, 2017

Sales________

Cost of goods sold_______

Gross profit_______

Selling and administrative expenses______

Operating income________

Interest expenses______

Earnings before income taxes______

Income from tax expenses_______

Net Income_______

Buff Company expects variable overhead costs to fluctuate with production volume according to the following rates: Fixed costs Indirect materials: Indirect labor: Utilities: Maintenance: Variable costs Indirect materials ($1.10/hour) Indirect labor ($0.90/hour) Utilities ($0.60/hour) Maintenance ($0.40/hour) Total variable costs $1.10 $0.90 $0.60 $0.40 Supervisory salaries Depreciation Property taxes and insurance Maintenance Total fixed costs Total manufacturing overhead Direct labor hours Buff Company also incurs fixed overhead costs. The amounts of fixed overhead costs are already provided in the budget below. Use this information to complete the Manufacturing Overhead Budget. 1 $30,563 $3,200 $1,300 $2,700 per direct labor per direct labor 2,310 per direct labor per direct labor Buff Company Manufacturing Overhead Budget For the year ending December 31, 2017 Quarter 2 $30,563 $3,200 $1,300 $2,700 3,780 3 $30,563 $3,200 $1,300 $2,700 4 $30,563 $3,200 $1,300 $2,700 5,460 4,350 Using the yearly amounts, what is the annual budgeted overhead rate per direct labor hour? Year $122,250 $12,800 $5,200 $10,800 15,900