Weygandt, Financial & Managerial Accounting, 2e PRINTER VERSION BACK Exercise 23

Question

Weygandt, Financial & Managerial Accounting, 2e PRINTER VERSION BACK Exercise 23-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following Units to be produced (by quarters): 10,600, 12,800, 14,400, 16,200 Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $o.80; indirect labor s Fixed overhead costs 1.20; and maintenance $0.60 per quarter: supervisory salaries $38,710; depreciation $19,350; and maintenance $14,800 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 ATLANTA ? MPANY Quarter TOSHIBA

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Variable Cost

Total Variable

Working Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4

Variable Cost

-Indirect Material 14416 17408 19584 22032 73440 0.8*1.7*10600 0.8*1.7*12800 0.8*1.7*14400 0.8*1.7*16200 -Indirect Labor 21624 26112 29376 33048 110160 1.2*1.7*10600 1.2*1.7*12800 1.2*1.7*14400 1.2*1.7*16200 -Maintenance 10812 13056 14688 16524 55080 0.6*1.7*10600 0.6*1.7*12800 0.6*1.7*14400 0.6*1.7*16200

Total Variable

46852 56576 63648 71604 238680 Fixed Cost -Supervisory 38710 38710 38710 38710 154840 -Dep 19350 19350 19350 19350 77400 -Maintenance 14800 14800 14800 14800 59200 Total Fixed 72860 72860 72860 72860 291440 Total Overhead 119712 129436 136508 144464 530120 Direct Labor Hours Hour per unit* Units 18020 21760 24480 27540 91800 1.7*10600 1.7*12800 1.7*14400 1.7*16200 Overhead Per unit Total OVH/Hours 6.64 5.95 5.58 5.25 5.77

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