The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted labor-hours: Budgeted direct labor-hours 1st Quarter 8,800 2nd Quarter 8,600 3rd Quarter 8,900 4th Quarter 8,300 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.00 per direct labor-hour and its total fixed manufacturing overhead is $56,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $14,000 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted labor-hours: Budgeted direct labor-hours 1st Quarter 8,800 2nd Quarter 8,600 3rd Quarter 8,900 4th Quarter 8,300 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.00 per direct labor-hour and its total fixed manufacturing overhead is $56,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $14,000 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct
labor-hours:
Budgeted direct labor-hours
1st Quarter
8,800
2nd Quarter
8,600
3rd Quarter
8,900
4th Quarter
8,300
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing
overhead rate is $3.00 per direct labor-hour and its total fixed manufacturing overhead is $56,000 per quarter. The only noncash item
included in fixed manufacturing overhead is depreciation, which is $14,000 per quarter.
Required:
1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year.
2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming
fiscal year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the company's manufacturing overhead budget for the upcoming fiscal year. (Round "Variable manufacturing overhead rate"
answers to 2 decimal places.)
Variable manufacturing overhead rate
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Cash disbursements for manufacturing overhead
Yuvwell Corporation
Manufacturing Overhead Budget
1st Quarter
2nd Quarter 3rd Quarter 4th Quarter
Year
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