Exercise 8-5 (Algo) Manufacturing Overhead Budget [LO8-6] The direct labor budget of Yuvwell Corporation for...

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Accounting

Exercise 8-5 (Algo) Manufacturing Overhead Budget [LO8-6]

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	11,800	10,100	10,400	11,200

The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.75 per direct labor-hour and its total fixed manufacturing overhead is $86,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $21,500 per quarter.

Required:

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

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

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.75 per direct labor-hour and its total fixed manufacturing overhead is $86,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $21,500 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Complete this question by entering your answers in the tabs below. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. (Round "Variable manufacturing overhead rate" answers places.)

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