unit in the second and third quarters. You have been provided the following budgeted information for the coming year:

$($Click the icon to view the budgeted information.$)$

$($Click the icon to view additional information.$)$

Read the requirements.

each quarter and an annual budgeted manufacturing overhead rate.

determined for each quarter and an annual budgeted manufacturing overhead rate for the year. $($Abbreviation used: $OH=$ overhead, mat. $=$ materials, and Var. $=$ variable.$)$

would you recommend Spacey use? Explain.

Spacey should use the budgeted

manufacturing overhead rate because capacity decisions are based on

Prices

vary based on quarterly fluctuations in

production.

More info

It takes $1$ direct manufacturing labor$-$hour to make each board. The actual direct

material cost is $$12\mathrm{.}00$ per board. The actual direct manufacturing labor rate is

$$26$ per hour. The budgeted variable manufacturing overhead rate is $$19$ per direct

manufacturing labor$-$hour. Budgeted fixed manufacturing overhead costs are

$$9,000$ each quarter.

Data table