(NM 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 . . . 8,000 8,200 8,500 7,800
The company’s variable manufacturing overhead rate is $ 3.25 per direct labor hour and the company’s fixed manufacturing overhead is $ 48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $ 16,000 per quarter.
Required:
Calculate the company’s cash disbursements for manufacturing overhead for the upcoming fiscal year.
Calculate the company’s cash disbursements for manufacturing overhead for the upcoming fiscal year.
| 1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Year | |
| Direct labour hour | 8000 | 8200 | 8500 | 7800 | 32500 |
| Variable manufacturing overhead rate per hour | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 |
| Variable manufacturing overhead | 26000 | 26650 | 27625 | 25350 | 105625 |
| Fixed manufacturing overhead | 48000 | 48000 | 48000 | 48000 | 192000 |
| Total manufacturing overhead | 74000 | 74650 | 75625 | 73350 | 297625 |
| Less: Depreciation | (16000) | (16000) | (16000) | (16000) | (64000) |
| Cash disbursements for manufacturing overhead | 58000 | 58650 | 59625 | 57350 | 233625 |
Get Answers For Free
Most questions answered within 1 hours.