The direct labour budget of Small Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Budgeted direct labour-hours	5,900	5,700	6,100	6,300

The companys variable manufacturing overhead rate is $2.20 per direct labour-hour, and the companys fixed manufacturing overhead is $36,000 per quarter. The only non-cash item included in the fixed manufacturing overhead is depreciation, which is $17,000 per quarter.

A)

Prepare the companys manufacturing overhead budget for the upcoming fiscal year.

Small Corporation

Manufacturing Budget Overhead

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Year
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Total Manufacturing Overhead
Less Depreciation
Cash disbursements for manufacturing overhead

B) Compute the companys manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.

Predetermined Overhead Rate for the Year