Company C's variable manufacturing overhead rate is $2.00 per direct labor-hour and the company's fixed manufacturing overhead is $40,250 per quarter. The only non-cash expense included in the fixed overhead is depreciation of $12,000 per quarter.
The budgeted direct labor-hours for each quarter are as followed:
|
First
|
Second
|
Third
|
Fourth
|
|
Budgeted direct labor hours
|
5,000
|
6,500
|
6,000
|
5,500
|
Required:
a) Construct company's manufacturing overhead budget for the year.
b) Compute the company's manufacturing overhead rates (variable, fixed and total) for the year.