**Construct the MOH Budget**| | Year 2 Quarter | | | | Year ||---|----------------|---|---|---|------|| | 1 | 2 | 3 | 4 | || Budgeted direct labor-hours | ? | ? | ? | ? | ? || Variable manufacturing overhead rate | ? | ? | ? | ? | ? || Total variable manufacturing overhead | ? | ? | ? | ? | ? || Total fixed manufacturing overhead | $60,000 | $60,000 | $60,000 | $60,000 | $240,000 || **Total manufacturing overhead** | ? | ? | ? | ? | ? || Less depreciation | 15,000 | 15,000 | 15,000 | 15,000 | $60,000 || **Cash disbursements for manufacturing overhead** | ? | ? | ? | ? | ? |---| | | | | | ||---|---|---|---|---|---|| Total manufacturing overhead (a) | | | | | ? || Budgeted direct labor-hours (b) | | | | | ? || **Predetermined overhead rate for the year (a)÷(b)** | | | | | ? |This table provides a framework for constructing a Manufacturing Overhead (MOH) budget, detailing both variable and fixed components, depreciation, and cash disbursements for each quarter and year. It requires input for direct labor-hours and variable overhead rate to complete the budget computations. **Sales and Production Data Overview****Budgeted Unit Sales:**- **Year 2 Quarter 1:** 40,000 units- **Year 2 Quarter 2:** 60,000 units- **Year 2 Quarter 3:** 100,000 units- **Year 2 Quarter 4:** 50,000 units- **Year 3 Quarter 1:** 70,000 units- **Year 3 Quarter 2:** 80,000 units**Sales Data:**- **Selling Price per Unit:** $12- **Accounts Receivable (Beginning Balance):** $65,000- **Sales Collection:** - Within same quarter: 75% - Following quarter: 25%**Inventory Data:**- **Desired Ending Finished Goods Inventory:** 30% of next quarter's budgeted unit sales- **Beginning Finished Goods Inventory:** 12,000 units**Raw Materials:**- **Materials Required per Unit:** 5 pounds- **Desired Ending Inventory:** 10% of next quarter’s production needs- **Beginning Inventory:** 23,000 pounds- **Material Cost:** $0.80 per pound- **Payment for Purchases:** - 60% in the purchase quarter - 40% in the following quarter- **Beginning Accounts Payable:** $81,500**Labor Costs:**- **Direct Labor Cost:** $15 per hour- **Direct Labor Hours:** 0.2 hours per unit**Manufacturing Overhead (MOH):**- **Variable MOH Rate:** $2 per hour- **Fixed MOH:** $60,000**Selling and Administrative (S&A) Expenses:**- **Variable Rate:** $1.80 per unit**Financial Data:**- **Minimum Cash Balance:** $50,000- **Annual Interest Rate:** 12%

Name: **Construct the MOH Budget**| | Year 2 Quarter | | | | Year |
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Construct the MOH Budget**| | Year 2 Quarter | | | | Year ||---|----------------|---|---|---|------|| | 1 | 2 | 3 | 4 | || Budgeted direct labor-hours | ? | ? | ? | ? | ? || Variable manufacturing overhead rate | ? | ?