Manufacturing Overhead Budget

The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor-hours.

1^st quarter 2^nd quarter 3^rd quarter 4^th quarter

Budgeted direct labor-hours 5,000 4,800 5,200 5,400

The company%u2019s variable manufacturing overhead rate is $1.75 per direct labor-hour and the company%u2019s fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.

Required:

1. Construct the company%u2019s manufacturing overhead budget for the upcoming fiscal year.

2. Compute the company%u2019s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.