Question
EXERCISE 85 Manufacturing Overhead Budget LO86 The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow- ing details concerning budgeted
EXERCISE 85 Manufacturing Overhead Budget LO86 The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow- ing details concerning budgeted direct labor-hours:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Budgeted direct labor-hours . . . . . . . . | 8,000 | 8,200 | 8,500 | 7,800 |
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.25 per direct labor-hour and its total fixed manu- facturing overhead is $48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter.
Required:
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Using Schedule 5 as your guide, prepare the companys manufacturing overhead budget for the upcoming fiscal year.
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Compute the companys predetermined overhead rate (including both variable and fixed man- ufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.
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Financial Accounting
Authors: David Perkins
4th Edition
111925700X, 978-1119257004
