Units to be produced (by quarters): 10,500, 12,500, 14,200, 16,200. Direct labor

Question

Units to be produced (by quarters): 10,500, 12,500, 14,200, 16,200. Direct labor: time is 1.8 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.90; indirect labor $1.40; and maintenance $0.60 Fixed overhead costs per quarter: supervisory salaries $37,470; depreciation $17,360; and maintenance $14,960. 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.)

Explanation / Answer

Manufacturing Overhead Budget

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Unit Production 10500 12500 14200 16200 53400 Direct Labor hours 18900 22500 25560 29160 96120 $ $ $ $ $ Variable Overheads: Indirect material 17010 20250 23004 26244 86508 Indirect labor 26460 31500 35784 40824 134568 Maintenance 11340 13500 15336 17496 54672 Fixed Overheads: Depreciation 17360 17360 17360 17360 69440 Supervisory salaries 37470 37470 37470 37470 149880 Maintenance 14960 14960 14960 14960 58840 Total 124600 135040 143914 154354 553908 Direct Labour hours 96120 Manufacturing overhead per direct labor hour 5.76

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