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

Question:

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

Fourth Quarter First Quarter 5,000 Second Quarter Third Quarter 4800 5,200 Budgeted direct labour-hours ... 5,400 EIRI .

The company€™s variable manufacturing overhead rate is $1.75 per direct labour-hour, and the company€™s fixed manufacturing overhead is $35,000 per quarter. The only non-cash item included in the fixed manufacturing overhead is depreciation, which is $15,000 per quarter.
Required:
1. Prepare the company€™s manufacturing overhead budget for the upcoming fiscal year.
2. Compute the company€™s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...