Altanta Company is preparing its manufacturing overhead budget for 2014. Relevan

Question

Altanta Company is preparing its manufacturing overhead budget for 2014. Relevant data consist of the following. Units to be produced (by quarters): 12,600, 14,600, 14,500, 15,400. Direct labor: time is 1.67 hours per unit. Variable overhead costs per direct labor hour: indirect materials dollar 0.64; indirect labor dollar 1.15; and maintenance dollar 0.58. Fixed overhead costs per quarter: supervisory salaries dollar 35,200; depreciation dollar 15,400; and maintenance dollar 12,200. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 2.58.) Variable costs: Fixed costs:

Explanation / Answer

Quarters 1 2 3 4 year Units to be produced 12600 14600 14500 15400 57100 Variable manufacturing overhead: Indirect materials @ $1.0688 / unit $     13,466.88 $     15,604.48 $     15,497.60 $     16,459.52 $     61,028.48 Indirect labour @ $1.9205 / unit $     24,198.30 $     28,039.30 $     27,847.25 $     29,575.70 $ 1,09,660.55 Maintenance @ $0.9686/unit $     12,204.36 $     14,141.56 $     14,044.70 $     14,916.44 $     55,307.06 Total variable manufacturing overhead cost $     49,869.54 $     57,785.34 $     57,389.55 $     60,951.66 $ 2,25,996.09 Fixed cost $     35,200.00 $     35,200.00 $     35,200.00 $     35,200.00 $ 1,40,800.00 supervisory salaries $     15,400.00 $     15,400.00 $     15,400.00 $     15,400.00 $     61,600.00 depreciation maintenance $     12,200.00 $     12,200.00 $     12,200.00 $     12,200.00 $     48,800.00 Total fixed manufacturing overhead $     62,800.00 $     62,800.00 $     62,800.00 $     62,800.00 $ 2,51,200.00 Total Manufacturing Overhead cost $ 1,12,669.54 $ 1,20,585.34 $ 1,20,189.55 $ 1,23,751.66 $ 4,77,196.09

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