2 The direct labor budget of Yuvwell Corporation for the upcoming fiscal year co
ID: 2556942 • Letter: 2
Question
2 The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter points Budgeted direct labor-hours 11,200 9,800 18,100 1e,900 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter Required: 2 Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year 3 Answer is complete but not entirely correct. Complete this question by entering your answers in t he tabs below Required 1 Required 2 Prepare the company's manufacturing overhead budget for the upcoming fiscal year. uvwe Il Corporation Manufacturing Overhead Budget Mc HallExplanation / Answer
Requirement -1;
Yuvwell Corporation
Manufacturing overhead budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Total
Budgeted direct labor hours
11200
9800
10100
10900
42000
Variable manufacturing overhead rate
$6
$6
$6
$6
$6
Variable manufacturing overhead
$67200
$58800
$60600
$65400
$252000
Fixed manufacturing overhead
$80000
$80000
$80000
$80000
$320000
Total manufacturing overhead
$147200
$138800
$140600
$145400
$572000
Less: Depreciation
$20000
$20000
$20000
$20000
$80000
Cash disbursements for manufacturing overheads
$127200
$118800
$120600
$125400
$492000
Requirement – 2;
Predetermined overhead rate for the year = $13.62
Explanation;
Formula of Predetermined overhead rate = (Total manufacturing overhead / Total budgeted direct labor hours)
Total manufacturing overhead = $572000
Total budgeted direct labor hours = 42000
Thus, Predetermined overhead rate ($572000 / 42000) = $13.62 (Approx.)
Yuvwell Corporation
Manufacturing overhead budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Total
Budgeted direct labor hours
11200
9800
10100
10900
42000
Variable manufacturing overhead rate
$6
$6
$6
$6
$6
Variable manufacturing overhead
$67200
$58800
$60600
$65400
$252000
Fixed manufacturing overhead
$80000
$80000
$80000
$80000
$320000
Total manufacturing overhead
$147200
$138800
$140600
$145400
$572000
Less: Depreciation
$20000
$20000
$20000
$20000
$80000
Cash disbursements for manufacturing overheads
$127200
$118800
$120600
$125400
$492000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.