E8-5 - Please explain how you arrived at your answers. Thank you! Exercise 8-5 M
ID: 2416396 • Letter: E
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E8-5 - Please explain how you arrived at your answers. Thank you!
Exercise 8-5 Manufacturing Overhead Budget [LO6]
The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor-hours.
The company’s variable manufacturing overhead rate is $1.50 per direct labor-hour and the company’s fixed manufacturing overhead is $31,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $13,000 per quarter.
Complete the company's manufacturing overhead budget for the upcoming fiscal year. (Input all amounts as positive values. Omit the "$" sign in your response.)
Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Exercise 8-5 Manufacturing Overhead Budget [LO6]
The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor-hours.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 5,050 4,600 5,250 5,650
The company’s variable manufacturing overhead rate is $1.50 per direct labor-hour and the company’s fixed manufacturing overhead is $31,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $13,000 per quarter.
Required: 1.
Complete the company's manufacturing overhead budget for the upcoming fiscal year. (Input all amounts as positive values. Omit the "$" sign in your response.)
Krispin Corporation
Manufacturing Overhead Budget 1st
Quarter 2nd
Quarter 3rd
Quarter 4th
Quarter Year Variable manufacturing overhead $ $ $ $ $ Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead $ $ $ $ $ 2.
Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Predetermined manufacturing overhead rate $Explanation / Answer
2.
variable oh rate 102825/ 20550 = $5/ direct labour hour
Krispin CorporationManufacturing Overhead Budget 1st
Quarter 2nd
Quarter 3rd
Quarter 4th
Quarter Year Variable manufacturing overhead $7575 $6900 $7875 $8475 $30825 Fixed manufacturing overhead 31000 31000 31000 31000 124000 Total manufacturing overhead 38575 37900 38875 39475 154825 Less depreciation (13000) (13000) (13000) (13000) (52000) Cash disbursements for manufacturing overhead $25575 $24900 $25875 $26475 $102825
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