Question
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
Budgeted direct labor-hours | 10,200 | 9,300 | 9,600 | 10,400 |
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $4.75 per direct labor-hour and its total fixed manufacturing overhead is $70,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $17,500 per quarter.
Required:
1. Prepare the companys manufacturing overhead budget for the upcoming fiscal year.
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2. Compute the companys predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
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