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Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '=ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours.

Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '=ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Thunder Creek Company's workers require 30 minutes of labor to produce each unit of product. The labor cost is $20 per hour Prepare a Direct Labor Budget. (When entering answers in the direct labor budget, use the direct materials budget for your cell references.) 2018 Budget #4: Direct Labor Budget Budgeted units to be produced Direct labor hours per unit Jan Feb Mar Q1 Total 18,000 24,000 30,000 72,000 0.50 0.50 0.50 0.50 Direct labor hours needed for production 9,000 12,000 15,000 36,000 Direct labor cost per hour 20 20 20 20 Budgeted direct labor cost 180,000 $ 240,000 $ 300,000 | $ 720,000 Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials = $1.00 per DLH; Indirect Labor Cost = $1.30 per DLH; Maintenance = $1.20 per DLH The Fixed Overhead Costs per month are: Salaries of $40,000, Depreciation =$20,000 and Maintenance = $10,000. Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '=ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours. 2018 Budget #5: Manufacturing Overhead Budget Jan Feb Mar Q1 Total Budgeted units to be produced VOH cost per unit Budgeted VOH Budgeted FOH Depreciation Salaries and maintenance Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours (DLHT) Predetermined overhead allocation rate per DLH.
Transcribed Image Text:Thunder Creek Company's workers require 30 minutes of labor to produce each unit of product. The labor cost is $20 per hour Prepare a Direct Labor Budget. (When entering answers in the direct labor budget, use the direct materials budget for your cell references.) 2018 Budget #4: Direct Labor Budget Budgeted units to be produced Direct labor hours per unit Jan Feb Mar Q1 Total 18,000 24,000 30,000 72,000 0.50 0.50 0.50 0.50 Direct labor hours needed for production 9,000 12,000 15,000 36,000 Direct labor cost per hour 20 20 20 20 Budgeted direct labor cost 180,000 $ 240,000 $ 300,000 | $ 720,000 Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials = $1.00 per DLH; Indirect Labor Cost = $1.30 per DLH; Maintenance = $1.20 per DLH The Fixed Overhead Costs per month are: Salaries of $40,000, Depreciation =$20,000 and Maintenance = $10,000. Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '=ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours. 2018 Budget #5: Manufacturing Overhead Budget Jan Feb Mar Q1 Total Budgeted units to be produced VOH cost per unit Budgeted VOH Budgeted FOH Depreciation Salaries and maintenance Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours (DLHT) Predetermined overhead allocation rate per DLH.
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