EXERCISE 8-5 Manufacturing Overhead Budget LO8-6 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 manufacturing overhead is $48,000 per quarter. The only noncash item included in fixed manufac- turing overhead is depreciation, which is $16,000 per quarter. Required: Using Schedule 5 as your guide, prepare the company's manufacturing overhead budget for the upcoming fiscal year. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent. EXERCISE 8-6 Selling and Administrative Expense Budget LO8-7 Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales.... 15,000 16,000 14,000 13,000 The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter. Required: Using Schedule 7 as your guide, prepare the company's selling and administrative expense budget for the upcoming fiscal year.