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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct labor hours
Manufacturing overhead rate per direct labor hour
Manufacturing Overhead Budget
Quarter
Year

Transcribed Image Text:Crane Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following.
Units to be produced (by quarters): 10,600, 12,720, 14,840, 16,960.
Direct labor: Time is 1.50 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $0.8; indirect labor $1.2; and maintenance $0.5.
Fixed overhead costs per quarter: supervisory salaries $43,725; depreciation $15,900; and maintenance $12,720.
Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List
variable expenses before fixed expense.)
CRANE COMPANY
Manufacturing Overhead Budget
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