Uma Company production has variable overhead costs of $8 per direct labor hour a

Question

Uma Company production has variable overhead costs of $8 per direct labor hour and fixed overhead costs of $56,000 per month. Budgeted production for the next three months is as follows:
Month:            Production:

OCT.                 6,000

NOV.                 5,500

DEC.                8,000

Each unit requires three hours of direct labor hours.

A. Uma's total variable overhead for October is

B. Uma's total overhead for October is

C.  Uma's total variable overhead for November is

D.  Uma's total fixed overhead for December is

E. Uma's total budgeted overhead for the last three months of the year equals

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C.  Uma's total variable overhead for November is

D.  Uma's total fixed overhead for December is

E. Uma's total budgeted overhead for the last three months of the year equals

Show work for all Correct Answers.

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Total Variable Overhead (October) = Total Number of Hours*Variable Overhead Per Hour = 6000*3*8 = 144000

Part B:

Total Overhead (October) = Fixed Overhead + Variable Overhead for October = 56000 + 144000 = 200000

Part C:

Total Variable Overhead (November) = Total Number of Hours*Variable Overhead Per Hour = 5500*3*8 = 132000

Part D:

Total Fixed Overhead (December) = 56000

Part E:

Total Budgeted Overhead = 56000*3 + 144000 + 132000 + 8000*3*8 = 636000

Thanks.

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