The direct labor budget of Yuvwell Corporation for the upcoming fi scal year contains the following detailsconcerning budgeted direct labor-hours:1st Quarter 2nd Quarter 3rd Quarter 4th QuarterBudgeted direct labor-hours ................... 8,000 8,200 8,500 7,800The company’s variable manufacturing overhead rate is $3.25 per direct labor-hour and the company’sfi xed manufacturing overhead is $48,000 per quarter. The only noncash item included in fi xed manufacturing overhead is depreciation, which is $16,000 per quarter.Required:1. Construct the company’s manufacturing overhead budget for the upcoming fiscal year.2. Compute the company’s manufacturing overhead rate (including both variable and fixed manufacturingoverhead) for the upcoming fiscal year. Round off to the nearest whole cent.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The direct labor budget of Yuvwell Corporation for the upcoming fi scal year contains the following details
concerning budgeted direct labor-hours:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted direct labor-hours ................... 8,000 8,200 8,500 7,800
The company’s variable manufacturing
fi xed manufacturing overhead is $48,000 per quarter. The only noncash item included in fi xed manufacturing overhead is
Required:
1. Construct the company’s manufacturing overhead budget for the upcoming fiscal year.
2. Compute the company’s manufacturing overhead rate (including both variable and fixed manufacturing
overhead) for the upcoming fiscal year. Round off to the nearest whole cent.
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