Exercise 23-11 Atlanta Company is preparing its manufacturing overhead budget fo

Question

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): 10,100, 12,800, 14,500, 17,000 Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials s0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $38,220; depreciation $17,810; and maintenance $14,920 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 Quarter 2 3 Year

Explanation / Answer

Q-1 Q-2 Q-3 Q-4 YEAR Budgeted Production units 10100 12800 14500 17000 54400 Labour hours per unit 1.5 1.5 1.5 1.5 1.5 Total DLH 15150 19200 21750 25500 81600 MANUFACTURING OVERHEADS BUDGET: Q-1 Q-2 Q-3 Q-4 YEAR Variable OH: Indirect material 12120 15360 17400 20400 65280 Indirect labour 19695 24960 28275 33150 106080 maintenance 10605 13440 15225 17850 57120 Total variable OH 42420 53760 60900 71400 228480 Fixed OH: Supervisor salaries 38220 38220 38220 38220 152880 Depreciation 17810 17810 17810 17810 71240 maintenance 14920 14920 14920 14920 59680 Total Fixed OH 70950 70950 70950 70950 283800 Total Manufacturing OH 113370 124710 131850 142350 512280 Divide Number of DLH 15150 19200 21750 25500 81600 Manufacturing OH per DLH 7.48 6.5 6.06 5.58 6.28

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.