Exercise 23-11 Atlanta Company is preparing its manufacturing overhead budget fo
ID: 2558835 • Letter: E
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): 10,400, 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 cost per quarter: supervisory salaries $37,240; depreciation S 18.190, and maintenance S 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 fia ATLANTA COMPANY Manufacturing Overhead Budget Quarter Version 4.24.5Explanation / Answer
Atlanta Company
Manufacturing Overhead Budget
For the Year Ended December 31, 2017
Quarter
1
2
3
3
Year
Variable Overhead Costs:
Indirect materials (direct labor hours x $0.90)
$14,040
$16,470
$19,845
$22,950
$73,305
Indirect labor (direct labor hours x $1.30)
$20,280
$23,790
$28,665
$33,150
$105,885
Maintenance (DLH x $0.70)
$10,920
$12,810
$15,435
$17,850
$57,015
Total Budgeted Variable Overhead Cost
$45,240
$53,070
$63,945
$73,950
$236,205
Fixed Overhead Cost:
Supervisor 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 Budgeted Fixed Overhead Costs
$69,740
$69,740
$69,740
$69,740
$278,960
Total manufacturing overhead (Fixed + Variable)
$114,980
$122,810
$133,685
$143,690
$515,165
Budgeted direct labor hours
15600
18300
22050
25500
81450
Manufacturing Overhead Rate per direct labor hour
$6.32
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Atlanta Company
Manufacturing Overhead Budget
For the Year Ended December 31, 2017
Quarter
1
2
3
3
Year
Variable Overhead Costs:
Indirect materials (direct labor hours x $0.90)
$14,040
$16,470
$19,845
$22,950
$73,305
Indirect labor (direct labor hours x $1.30)
$20,280
$23,790
$28,665
$33,150
$105,885
Maintenance (DLH x $0.70)
$10,920
$12,810
$15,435
$17,850
$57,015
Total Budgeted Variable Overhead Cost
$45,240
$53,070
$63,945
$73,950
$236,205
Fixed Overhead Cost:
Supervisor 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 Budgeted Fixed Overhead Costs
$69,740
$69,740
$69,740
$69,740
$278,960
Total manufacturing overhead (Fixed + Variable)
$114,980
$122,810
$133,685
$143,690
$515,165
Budgeted direct labor hours
15600
18300
22050
25500
81450
Manufacturing Overhead Rate per direct labor hour
$6.32
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