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EXERCISE 9-5 Manufacturing Overhead Budget [L06) The direat labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct

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EXERCISE 9-5 Manufacturing Overhead Budget [L06) The direat 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 directi niso labor-hours. 8,000 8,200 8,500 7,800 The company's, variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is $48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter. Required: 1. Construct the company's manufacturing overhead budget for the upcoming fiscal year, 2. Compute the compuny's manufacturing overhead rate (including both variable and fixed man- ufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent. EXERCISE 9-13 Direct Materials and Direct Labor Budgets (L04, L05) The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced ...... 7.000 8,000 6,000 5,000 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,400 pounds and the beginning accounts payable for the first quarter is budgeted to be $2.940. Each unit requires 2 pounds of raw material that costs $1.40 per pound. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 1.500 pounds. Manage- ment plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the follow- ing quarter. Each unit requires 0.60 direct labor-hours and direct labor-hour workers are paid $14.00 per hour. Required: 1. Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. 2. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the di- rect labor workforce is adjusted ench quarter to match the number of hours required to pro- duce the forecasted number of units produced

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