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 11,200 Budgeted direct labor-hours 9,800 10,100 10,900 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: 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.
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 11,200 Budgeted direct labor-hours 9,800 10,100 10,900 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: 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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text: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
Budgeted direct labor-hours
11,200
9,800
10,100
10,900
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:
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.
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. (Round "Variable manufacturing
overhead rate" answers to 2 decimal places.)
Yuvwell Corporation
Manufacturing Overhead Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
Variable manufacturing overhead rate
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Cash disbursements for manufacturing
overhead
Required 1
Required 2
>
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