Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevan

Question

Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters): 11,000, 13,000, 14,700, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials s0.90; indirect labor $1.20; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $38,570; depreciation $17,020; and maintenance $13,260 Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round o search

Explanation / Answer

Manufacturing Overhead Budget For the Year Ending December 31, 2017 1 2 3 4 Year Variable Costs: Indirect Materials 16830 19890 22491 25398 84609 Indirect Labor 22440 26520 29988 33864 112812 Maintenance 13090 15470 17493 19754 65807 Total Variable 52360 61880 69972 79016 263228 Fixed Costs Supervisory Salaries 38570 38570 38570 38570 154280 Depreciation 17020 17020 17020 17020 68080 Maintenance 13260 13260 13260 13260 53040 Total Fixed 68850 68850 68850 68850 275400 Total Manufacturing Overhead 121210 130730 138822 147866 538628 Direct labor hours 18700 22100 24990 28220 94010 Manufacturing overhead rate per direct labor hour 5.73

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