Joshua Hill, Bates & Hill Fabricators€™ production manager, has just completed the company€™s production budget for the first quarter (see Exercise 5-11). He has identified the following monthly expenses that will be needed to support the company€™s manufacturing process.

The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12 per direct labor hour for fixed manufacturing overhead and $0.70 per direct labor hour for variable manufacturing overhead.

Required
Prepare Bates & Hill€™s manufacturing overhead budget for the firstquarter.

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Fixed Overhead per month $30,000 21,500 15,000 30,000 7,000 9,000 Variable Overhead per DLH Depreciation Indirect materials Indirect labor Utilities Property taxes Maintenance $0.25 0.20 0.10 0.15