The direct labour budget of Small Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours:
Year 2 Year 3 First Second Third Fourth First
Budgeted production, in calculators . . . . . . . . . . 60,000 90,000 150,000 100,000 80,000
First Second Third Fourth Quarter Quarter Quarter Quarter
Units to be produced . . . . . . . . . . . . . . . . . . . . . . 10,000 8,800 9,000 9,800
First Second Third Fourth Quarter Quarter Quarter Quarter
Budgeted direct labour-hours . . . . . . . . . . . . . . 5,000 4,800 5,200 5,400

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The company’s variable manufacturing overhead rate is $1.75 per direct labour-hour, and the company’s fixed manufacturing overhead is $35,000 per quarter. The only non-cash item included in the fixed manufacturing overhead is depreciation, which is $15,000 per quarter.
Required:
1. Prepare 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.

Answer rating: 100% (QA)

ANSWER The diret lbr ... View the full answer