5. The direct labor budget of Yuvwell Corporation for the upcoming fiscal year c

Question

5. The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours Budgeted direct labor-hours 11,800 10,100 10,400 11,200 The company's variable manufacturing overhead rate is $6.75 per direct labor-hour and the company's fixed manufacturing overhead is $86,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $21,500 per quarter Required 1. Complete the company's manufacturing overhead budget for the upcoming fiscal year Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear 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

Explanation / Answer

Manufacturing overhead budget :

2) Total budgeted manufacturing overhead for the year = 637625

Budgeted direct labour hour for the year = 43500

Predetermine overhead rate for the year = 14.66 per hour

1st quarter 2nd quarter 3rd quarter 4th quarter Year Direct labour hour 11800 10100 10400 11200 43500 Variable manufacturing overhead rate per hour 6.75 6.75 6.75 6.75 6.75 Variable manufacturing overhead 79650 68175 70200 75600 293625 Fixed manufacturing overhead 86000 86000 86000 86000 344000 Total manufacturing overhead 165650 154175 156200 161600 637625 Less: Depreciation -21500 -21500 -21500 -21500 -86000 Cash disbursement on manufacturing overhead 144150 132675 134700 140100 551625

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