Frizell Company is preparing its manufacturing overhead budget for 2011. Relevan
ID: 2343516 • Letter: F
Question
Frizell Company is preparing its manufacturing overhead budget for 2011. Relevant data consist of the following.
Units to be produced (by quarters): 12,000, 12,800, 15,800, 17,800.
Direct labor: Time is 1.8 hours per unit.
Variable overhead costs per direct labor hour: Indirect materials $0.60; indirect labor $1.10; and maintenance $0.40.
Fixed overhead costs per quarter: Supervisory salaries $34,260; depreciation $16,370; and maintenance $11,570.
Complete the manufacturing overhead budget for the year, showing quarterly data.
For the Year Ending December 31, 2011
Quarter
1
2
3
4
Year
$
$
$
$
$
$
FRIZELL COMPANY Manufacturing Overhead BudgetFor the Year Ending December 31, 2011
Quarter
1
2
3
4
Year
Variable costs Indirect materials $ $ $ $ $ Indirect labor Maintenance Total variable Fixed costs Supervisory salaries Depreciation Maintenance Total fixed Total manufacturing overhead$
$
$
$
$
Direct labor hours Manufacturing overhead rate per direct labor hour$
Explanation / Answer
quarter
1
2
3
4
total
Variable costs
indirect material
12960
13824
17064
19224
63072
indirect labor
23760
25344
31284
35244
115632
maintenance
8640
9216
11376
12816
42048
total variable
45360
48384
59724
67284
220752
fixed costs
supervisory
34260
34260
34260
34260
137040
depreciation
16370
16370
16370
16370
65480
maintenance
11570
11570
11570
11570
46280
total fixed
62200
62200
62200
62200
248800
total manufacturing OH
107560
110584
121924
129484
469552
diret labor hours
21600
23040
28440
32040
105120
MOH per DLH
4.466819
quarter
1
2
3
4
total
Variable costs
indirect material
12960
13824
17064
19224
63072
indirect labor
23760
25344
31284
35244
115632
maintenance
8640
9216
11376
12816
42048
total variable
45360
48384
59724
67284
220752
fixed costs
supervisory
34260
34260
34260
34260
137040
depreciation
16370
16370
16370
16370
65480
maintenance
11570
11570
11570
11570
46280
total fixed
62200
62200
62200
62200
248800
total manufacturing OH
107560
110584
121924
129484
469552
diret labor hours
21600
23040
28440
32040
105120
MOH per DLH
4.466819
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