Danny Chum, the owner of DC Limited, prepared the following 2019 direct labor budget: DC Limited Direct
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, 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.
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu