Manufacturing Overhead Budget

At Royal, manufacturing overhead is applied to units of product on the basis of direct labor hours.

The variable manufacturing overhead rate is $20 per direct labor hour.

Fixed manufacturing overhead is $50,000 per month, which includes $20,000 of noncash costs (primarily depreciation of plant assets).

prepare the manufacturing overhead budget.

		Month
	April	May	June	Quarter 2
Budgeted direct labor hours
Variable manufacuring overhead rate
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead cost
Less: noncash costs (depreciation)
Cash disbursements for manufacturing overhead