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E21-11 prepare a manufacturing overhead budget for the year Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following.
| E21-11 prepare a manufacturing overhead budget for the year | |||||||||
| 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: time is 1.5 hour per unit. | |||||||||
| Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor | |||||||||
| $1.20; and maintenance $0.50. | |||||||||
| Fixed overhead costs per quarter: supervisory salaries $35,000; depreciation $15,000; | |||||||||
| and maintenance $12,000. | |||||||||
| Instructions | |||||||||
| Prepare the manufacturing overhead budget for the year; showing quarterly data. | |||||||||
| ATLANTA COMPANY | |||||||||
| Manufacturing Overhead Budget | |||||||||
| For the Year Ending December 31, 2017 | |||||||||
| Quarter | |||||||||
| 1 | 2 | 3 | 4 | Year | |||||
| Units to be produced | |||||||||
| Direct labor hours per unit | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | ||||
| Total direct labor hours | |||||||||
| Variable costs | |||||||||
| Indirect materials ($0.80/hour) | |||||||||
| Indirect labor ($1.20/hour) | |||||||||
| Maintenance ($0.50/hour) | |||||||||
| Total variable | |||||||||
| Fixed costs | |||||||||
| Supervisory salaries | |||||||||
| Depreciation | |||||||||
| Maintenance | |||||||||
| Total fixed | |||||||||
| Total manufacturing overhead | |||||||||
| Manufacturing overhead rate per direct labor hour | |||||||||
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann
1st Canadian Edition
1118037960, 9781118037966
