From the following details provided by Chestnut, Inc., prepare the manufacturing overhead budget for the year. Also, calculate the predetermined overhead allocation rate, using direct labor hours as the allocation base.

First Quarter Second Quarter Third Quarter Fourth Quarter

Budgeted production units 15,000 18,000 21,000 24,000

Variable overhead cost per unit $45 $45 $45 $45

Fixed overhead costs:

Depreciation $3,000 $3,000 $3,000 $3,000

Rent $5,000 $5,750 $6,250 $7,250

Direct Labor Hours 12,500 14,500 17,200 12,800