Exercise 7-5 Manufacturing Overhead Budget [LO7-6]

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted direct labor-hours	9,200	8,800	9,100	9,500

The companys variable manufacturing overhead rate is $3.50 per direct labor-hour and the companys fixed manufacturing overhead is $60,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.

Required:

1.

Complete the companys manufacturing overhead budget for the upcoming fiscal year.

Yuvwell Corporation
Manufacturing Overhead Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less depreciation
Cash disbursements for manufacturing overhead

2.

Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.

Total budgeted manufacturing overhead for the year
Budgeted direct labor-hours for the year
Predetermined overhead rate per hour for the year