Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevan
ID: 2464908 • Letter: A
Question
Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following.
Units to be produced (by quarters): 10,100, 12,300, 14,500, 16,200.
Direct labor: Time is 1.5 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70.
Fixed overhead costs per quarter: supervisory salaries $38,410; depreciation $19,790; and maintenance $14,080.
Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)
ATLANTA COMPANY
Manufacturing Overhead Budget
For the Quarter Ending December 31, 2017
December 31, 2017
For the Year Ending December 31, 2017
Quarter
1
2
3
4
Year
Supervisory Salaries
Fixed Costs
Indirect Labor
Beginning Direct Materials
Units to be Produced
Depreciation
Indirect Materials
Variable Costs
Direct Materials Per Unit
Desired Ending Materials
Direct Materials Purchases
Total Manufacturing Overhead
Total Materials Required
Maintenance
Total Fixed
Total Pounds Needed for Production
Total Variable
Total Manufacturing Overhead
Indirect Materials
Depreciation
Direct Materials Per Unit
Total Materials Required
Indirect Labor
Total Fixed
Total Pounds Needed for Production
Total Variable
Variable Costs
Maintenance
Beginning Direct Materials
Units to be Produced
Supervisory Salaries
Desired Ending Materials
Direct Materials Purchases
Fixed Costs
$
$
$
$
$
Desired Ending Materials
Maintenance
Supervisory Salaries
Units to be Produced
Total Fixed
Indirect Materials
Total Manufacturing Overhead
Direct Materials Purchases
Total Materials Required
Total Pounds Needed for Production
Total Variable
Variable Costs
Beginning Direct Materials
Direct Materials Per Unit
Depreciation
Fixed Costs
Indirect Labor
Total Manufacturing Overhead
Fixed Costs
Total Variable
Total Pounds Needed for Production
Units to be Produced
Beginning Direct Materials
Variable Costs
Depreciation
Total Fixed
Desired Ending Materials
Direct Materials Per Unit
Indirect Labor
Direct Materials Purchases
Indirect Materials
Maintenance
Total Materials Required
Supervisory Salaries
Total Manufacturing Overhead
Supervisory Salaries
Desired Ending Materials
Total Materials Required
Total Pounds Needed for Production
Indirect Materials
Total Variable
Direct Materials Purchases
Units to be Produced
Depreciation
Fixed Costs
Indirect Labor
Maintenance
Variable Costs
Beginning Direct Materials
Direct Materials Per Unit
Total Fixed
Indirect Labor
Depreciation
Desired Ending Materials
Supervisory Salaries
Indirect Materials
Total Pounds Needed for Production
Beginning Direct Materials
Direct Materials Per Unit
Units to be Produced
Total Variable
Total Fixed
Maintenance
Total Manufacturing Overhead
Variable Costs
Direct Materials Purchases
Fixed Costs
Total Materials Required
Units to be Produced
Indirect Materials
Supervisory Salaries
Maintenance
Total Pounds Needed for Production
Variable Costs
Total Manufacturing Overhead
Direct Materials Per Unit
Total Materials Required
Total Variable
Beginning Direct Materials
Fixed Costs
Indirect Labor
Desired Ending Materials
Total Fixed
Depreciation
Direct Materials Purchases
Total Variable
Maintenance
Indirect Labor
Total Manufacturing Overhead
Direct Materials Purchases
Supervisory Salaries
Indirect Materials
Total Materials Required
Depreciation
Total Pounds Needed for Production
Units to be Produced
Total Fixed
Variable Costs
Beginning Direct Materials
Direct Materials Per Unit
Desired Ending Materials
Fixed Costs
Total Pounds Needed for Production
Direct Materials Per Unit
Maintenance
Variable Costs
Total Fixed
Beginning Direct Materials
Supervisory Salaries
Direct Materials Purchases
Desired Ending Materials
Total Manufacturing Overhead
Fixed Costs
Indirect Labor
Indirect Materials
Total Materials Required
Total Variable
Depreciation
Units to be Produced
Total Variable
Units to be Produced
Direct Materials Per Unit
Total Manufacturing Overhead
Total Materials Required
Direct Materials Purchases
Fixed Costs
Total Pounds Needed for Production
Maintenance
Variable Costs
Indirect Labor
Beginning Direct Materials
Indirect Materials
Depreciation
Supervisory Salaries
Desired Ending Materials
Total Fixed
Desired Ending Materials
Depreciation
Maintenance
Direct Materials Per Unit
Beginning Direct Materials
Supervisory Salaries
Total Manufacturing Overhead
Variable Costs
Indirect Materials
Total Fixed
Direct Materials Purchases
Total Materials Required
Fixed Costs
Total Pounds Needed for Production
Total Variable
Indirect Labor
Units to be Produced
$ $ $ $ $
Direct labor hours
Manufacturing overhead rate per direct labor hour $
Explanation / Answer
Atlanta Company: Manufacturing overhead budget for 2017
Q1
Q2
Q3
Q4
Year End
Production per Quarter
10,100
12,300
14,500
16,200
53,100
Direct Labor @ 1.5 Hrs P.U.
15,150
18,450
21,750
24,300
79,650
Variable Over Heads
Indirect Materials @ 0.80 P.H.
12,120
14,760
17,400
19,440
63,720
Indirect Labor @ 1.30 P.H.
19,695
23,985
28,275
31,590
1,03,545
Maintenance @ 0.70 P.H.
10,605
12,915
15,225
17,010
55,755
Total
42,420
51,660
60,900
68,040
2,23,020
Fixed Over Heads
Supervisory Salaries
38,410
38,410
38,410
38,410
1,53,640
Depreciation
19,790
19,790
19,790
19,790
79,160
Maintenance
14,080
14,080
14,080
14,080
56,320
Total
72,280
72,280
72,280
72,280
2,89,120
Total Over Heads
1,14,700
1,23,940
1,33,180
1,40,320
5,12,140
Direct Labor Hours
15,150
18,450
21,750
24,300
79,650
Over Head per Direct Labor Hour
7.57
6.72
6.12
5.77
6.43
Q1
Q2
Q3
Q4
Year End
Production per Quarter
10,100
12,300
14,500
16,200
53,100
Direct Labor @ 1.5 Hrs P.U.
15,150
18,450
21,750
24,300
79,650
Variable Over Heads
Indirect Materials @ 0.80 P.H.
12,120
14,760
17,400
19,440
63,720
Indirect Labor @ 1.30 P.H.
19,695
23,985
28,275
31,590
1,03,545
Maintenance @ 0.70 P.H.
10,605
12,915
15,225
17,010
55,755
Total
42,420
51,660
60,900
68,040
2,23,020
Fixed Over Heads
Supervisory Salaries
38,410
38,410
38,410
38,410
1,53,640
Depreciation
19,790
19,790
19,790
19,790
79,160
Maintenance
14,080
14,080
14,080
14,080
56,320
Total
72,280
72,280
72,280
72,280
2,89,120
Total Over Heads
1,14,700
1,23,940
1,33,180
1,40,320
5,12,140
Direct Labor Hours
15,150
18,450
21,750
24,300
79,650
Over Head per Direct Labor Hour
7.57
6.72
6.12
5.77
6.43
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