Sales budget Production budget Direct Materials budget Direct Labor budget Factory overhead budget Finished goods Assumptions Variable factory overhead rate per labor hour 1.51 Safevaccine Corp. Factory Overhead Budget For the year ending December 31, 2021 1st quarter 2nd quarter 3rd quarter 4th quarter Annual recap 75 751 75 75 300 75 Total direct labor hours needed Variable factory overhead rate Total variable factory overhead Add: Fixed factory overhead Cash paid for factory overhead Less: Depreciation Cash paid for factory overhead 15,000 15,075 2,000 P13,075.00 75 15,000 15.075 2,000 P13,075.00 75 15.000 15,075 2,000 P13,075.00 75 15.000 15,075 2,000 P13,075.00 75 60,000 60.075 8.000 P52,075.00 52,075 8,000 Computation of applied factory overhead rate per hour Annual cash paid for factory overhead Add: Annual depreciation expense Total Divide by: Total annual direct labor hours needed Applied factory overhead per hour 60,075 1.51 40,050