Compute the company manufacturing overhead rates

Reference no: EM132761628

Company's variable manufacturing overhead rate is $2.00 per direct labor-hour and the company's fixed manufacturing overhead is $40,250 per quarter. The only non-cash expense included in the fixed overhead is depreciation of $12,000 per quarter.

The budgeted direct labor-hours for each quarter are as followed:

First Second Third Fourth

Budgeted direct labor hours 5,000 6,500 6,000 5,500

Required:

Problem a) Construct company's manufacturing overhead budget for the year.

Problem b) Compute the company's manufacturing overhead rates (variable, fixed and total) for the year

Reference no: EM132761628

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