Instructions

Prepare a direct labour budget for $2022.$ Wage rates are expected to be $$16$ for the first two quarters and $$18$ for the remaining two quarters.

Prepare a manufacturing overhead budget for the year.

E$12\mathrm{.}23($LO$3)$

Keyser Company is preparing its manufacturing overhead budget for $2022.$ Relevant data are as follows:

Units to be produced $($by quarters$)$: $10,000,12,000,15,000,18,000$

Direct labour: $1\mathrm{.}5$ hours per unit

Variable overhead costs per direct labour hour: indirect materials $$0\mathrm{.}70$; indirect labour $$1\mathrm{.}20$; and maintenance $$0\mathrm{.}50$

Fixed overhead costs per quarter: supervisory salaries $$35,000$; depreciation $$16,000$; and maintenance $$15,000$ Instructions

Prepare the manufacturing overhead budget for the year, showing quarterly data.