Exercise 21-11 Your answer is partially correct. Try again. Atlanta Company is p
ID: 2529623 • Letter: E
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Exercise 21-11 Your answer is partially correct. Try again. Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following Units to be produced (by quarters): 10,400, 12,200, 14,700, 17,000 Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.90; indirect labor 1.30; and maintenance 0.70 Fixed overhead costs per quarter: supervisory salaries $37,240; depreciation $18,190; and maintenance $14,310 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 Year Ending December 31, 2017 Quarter 2 3 4 Year Units to be Produced Desired Ending Materials ndirect Material Undirect Labor otal Variabl ixed Cost pervI Salaries reciation aintenance otal Fixed otal Manufacturing verhead Direct labor hours Manufacturing overhead rate per direct labor hourExplanation / Answer
Atlanta Company
Manufacturing overhead budget:
Atlanta Company
Manufacturing Overhead Budget
for the year ending December 2017
Quarter
1
2
3
4
Year
Variable costs:
Indirect Materials at $0.90 per hour
$14,040
$16,470
$19,845
$22,950
$73,305
Indirect labor at $1.30
$20,280
$23,790
$28,665
$33,150
$105,885
Maintenance at $0.70
$10,920
$12,810
$15,435
$17,850
$57,015
Total Variable
$45,240
$53,070
$63,945
$73,950
$236,205
Fixed Costs:
Supervisory Salaries
$37,240
$37,240
$37,240
$37,240
$148,960
Depreciation
$18,190
$18,190
$18,190
$18,190
$72,760
Maintenance
$14,310
$14,310
$14,310
$14,310
$57,240
total fixed cost
$69,740
$69,740
$69,740
$69,740
$278,960
Total manufacturing overhead
$114,980
$122,810
$133,685
$143,690
$515,165
Direct labor hours
15,600
18,300
22,050
25,500
81,450
Manufacturing overhead rate per direct labor hour
$6.32
units to be produced
10,400
12,200
14,700
17,000
54,300
Direct labor hours per unit
1.5
1.5
1.5
1.5
1.5
total direct labor hours
15,600
18,300
22,050
25,500
81,450
Atlanta Company
Manufacturing Overhead Budget
for the year ending December 2017
Quarter
1
2
3
4
Year
Variable costs:
Indirect Materials at $0.90 per hour
$14,040
$16,470
$19,845
$22,950
$73,305
Indirect labor at $1.30
$20,280
$23,790
$28,665
$33,150
$105,885
Maintenance at $0.70
$10,920
$12,810
$15,435
$17,850
$57,015
Total Variable
$45,240
$53,070
$63,945
$73,950
$236,205
Fixed Costs:
Supervisory Salaries
$37,240
$37,240
$37,240
$37,240
$148,960
Depreciation
$18,190
$18,190
$18,190
$18,190
$72,760
Maintenance
$14,310
$14,310
$14,310
$14,310
$57,240
total fixed cost
$69,740
$69,740
$69,740
$69,740
$278,960
Total manufacturing overhead
$114,980
$122,810
$133,685
$143,690
$515,165
Direct labor hours
15,600
18,300
22,050
25,500
81,450
Manufacturing overhead rate per direct labor hour
$6.32
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