80.2K

Verified Solution

Link Copied!

1. The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted direct labor-hours	10,200	9,300	9,600	10,400

The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $4.75 per direct labor-hour and its total fixed manufacturing overhead is $70,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $17,500 per quarter.

Required:

Prepare the companys manufacturing overhead budget for the upcoming fiscal year.

Compute the companys predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.

2.

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	33,000	35,000	26,000	31,000

The companys variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $9,200 will be paid in the second quarter.

Required:

Prepare the companys selling and administrative expense budget for the upcoming fiscal year.

Note: Round "Per Unit" answers to 2 decimal places.

Answer & Explanation Solved by verified expert

See Answer