Solution-Construct company manufacturing overhead budget

Construct company manufacturing overhead budget

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Reference no: EM13509199

Company C'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:

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

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

Reference no: EM13509199

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Construct company manufacturing overhead budget

Reference no: EM13509199

Reference no: EM13509199

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