Help Save&Exit; Submit Check my work The direct labor budget of Yuvwell Corporat
ID: 2508988 • Letter: H
Question
Help Save&Exit; Submit Check my work The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: Budgeted direct labor-hours The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.25 per direct labor-hour and its total fixed manufacturing overhead is $74,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $18,500 per quarter 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for the upcoming fiscal year C Prev of 7 Next 838 8Explanation / Answer
1) Yuvwell Corporation
Manufacturing Overhead Budget (Amounts in $)
2) Predetermined Overhead will be equal to total manufacturing overhead for year divided by total budgeted labor hours for the year.
Predetermined Overhead Rate for the year = Total Manufacturing Overhead/Budgeted Direct Labor Hours
= $508,625/40,500 hrs = $12.56 per hour
Particulars 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1) Budgeted Direct labor hours 10,600 9,500 9,800 10,600 40,500 2) Variable manufacturing overhead rate $5.25 $5.25 $5.25 $5.25 $5.25 3) Variable Manufacturing Overhead (1*2) 55,650 49,875 51,450 55,650 212,625 4) Fixed Manufacturing Overhead 74,000 74,000 74,000 74,000 296,000 5) Total Manufacturing Overhead (3+4) 129,650 123,875 125,450 129,650 508,625 6) Depreciation 18,500 18,500 18,500 18,500 74,000 7) Cash disbursements for manufacturing overhead (5-6) 111,150 105,375 106,950 111,150 434,625Related Questions
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