Question: Danny Chum, the owner of DC Limited, prepared the following 2019 direct labor budget: DC Limited Direct Labor Budget For the Year Ended May 31,
Danny Chum, the owner of DC Limited, prepared the following 2019 direct labor budget:
DC Limited
Direct Labor Budget
For the Year Ended May 31, 2019
Q1 Q2 Q3 Q4
Budgeted Direct Labor Hours 38,000 24,000 42,000 55,000
Direct Labor Cost per Direct Labor Hour $10 $12 $5 $9
Budgeted Direct Labor Costs $380,000 $288,000 $210,000 $495,000
For 2019, Danny budgets $588,300 of manufacturing overhead. The budgeted manufacturing overhead cost is normally allocated based on the budgeted direct labor hours.
Determine the amount of budgeted manufacturing overhead for each quarter.
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