Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,100, 12,300, 14,500, 16,200. Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $38,410; depreciation $19,790; and maintenance $14,080. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, eg. 1.25. List variable expenses before fixed expense.)
Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,100, 12,300, 14,500, 16,200. Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $38,410; depreciation $19,790; and maintenance $14,080. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, eg. 1.25. List variable expenses before fixed expense.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ATLANTA COMPANY
Manufacturing Overhead Budget
Quarter
Year
24
Direct labor hours
Manufacturing overhead rate per direct labor hour
Transcribed Image Text:Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following.
Units to be produced (by quarters): 10,100, 12,300, 14,500, 16,200.
Direct labor: Time is 1.5 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70.
Fixed overhead costs per quarter: supervisory salaries $38,410; depreciation $19,790; and maintenance $14,080.
Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, eg. 1.25.
List variable expenses before fixed expense.)
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