Thunder Creek Company expects sales of 19,000 units in January 2018, 25,000 units in February, 31,000 units in March, 35,000 in April, and 37,000 in may. The sales price is $65 per unit.

  
 
 

1. Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials $2.00 per DLH; Indirect Labor Cost-$2.30 per DLH; Maintenance = $2.20 per DLH 46 47 2. The Fixed Overhead Costs per month are: Salaries of $50,000, Depreciation -$30,000 and Maintenance-$20,000. 48 Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '-ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours. 49 50 51 52 Budget #5: Manufacturing Overhead Budget 53 Budgeted units to be produced 54 VOH cost per unit 55 Budgeted VOH 56 Budgeted FOH 57 Depreciation 58 Salaries and maintenance 59 Total budgeted FOH 60 Budgeted manufacturing overhead costs 61 62 Direct labor hours (DLHr) 63 Predetermined overhead allocation rate per OLH Jan 64 65 Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method Feb 2018 Mar G Q1 Total