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Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following....

Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters): 10,200, 12,100, 15,000, 16,700. Direct labor: Time is 1.6 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.90; indirect labor $1.30; and maintenance $0.60. Fixed overhead costs per quarter: supervisory salaries $36,280; depreciation $18,600; and maintenance $15,000.

Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)

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Answer #1
ATLANTA COMPANY
Manufacturing Overhead Budget
For the Year Ending December 31, 2017
1 2 3 4 Year
Variable Costs
Indirect Materials 14688 17424 21600 24048 77760
Indirect Labor 21216 25168 31200 34736 112320
Maintenance 9792 11616 14400 16032 51840
Total Variable 45696 54208 67200 74816 241920
Fixed Costs
Supervisory Salaries 36280 36280 36280 36280 145120
Depreciation 18600 18600 18600 18600 74400
Maintenance 15000 15000 15000 15000 60000
Total Fixed 69880 69880 69880 69880 279520
Total Manufacturing Overhead 115576 124088 137080 144696 521440
Direct labor hours 16320 19360 24000 26720 86400
Manufacturing overhead rate per direct labor hour 6.04
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