Additional Exercise 180 Thread Company is preparing its manufacturing overhead budget for 2016. Relevant data consist of the following. Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct labor: Time is 1 hour per unit. Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.20; and maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $42,000; depreciation $16,000; and maintenance $12,000. Prepare the manufacturing overhead budget for the year, showing quarterly data. (List variable costs before fixed costs.) THREAD COMPANY Manufacturing Overhead Budget For the Year Ending December 31, 2016 Second Quarter First Quarter Third Quarter Fourth Quarter Year Manufacturing overhead rate per direct labor hour Maintenance Supervisory salaries Indirect materials Depreciation Total variable costs Total manufacturing overhead Indirect labor Direct labor hours Fixed costs Total fixed costs Manufacturing overhead rate per direct labor hour Variable costs