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Manufacturing Overhead Budget At Royal, manufacturing overhead is applied to units of product on the...

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Accounting

Manufacturing Overhead Budget

At Royal, manufacturing overhead is applied to units of product on the basis of direct labor hours.

The variable manufacturing overhead rate is $20 per direct labor hour.

Fixed manufacturing overhead is $50,000 per month, which includes $20,000 of noncash costs (primarily depreciation of plant assets).

prepare the manufacturing overhead budget.

Month

April

May

June

Quarter 2

Budgeted direct labor hours

Variable manufacuring overhead rate

Variable manufacturing overhead

Fixed manufacturing overhead

Total manufacturing overhead cost

Less: noncash costs (depreciation)

Cash disbursements for manufacturing overhead

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