Business, 06.05.2020 03:43 j015

Sandhill Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,700, 13,000, 14,900, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.60. Fixed overhead costs per quarter: supervisory salaries $36,850; depreciation $17,010; and maintenance $13,350. 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.) SANDHILL COMPANY Manufacturing Overhead Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $ $ Direct labor hours Manufacturing overhead rate per direct labor hour $

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Answer from: Maria3737

Answer :

Total manufacturing overhead = $512,824

Direct labor hours = 93,840

Manufacturing overhead rate per direct labor hour = $5.46

Explanation :

As per the data given in the question,

Sandhill company

Manufacturing Overhead Budget

Particulars Quarter

1 2 3 4 Year

Units produced 10,700 13,000 14,900 16,600 55,200

Variable cost:

Indirect material at $0.80 $14,552 $17,680 $20,264 $22,576 $75,072

indirect labor at $1.20 $21,828 $26,520 $30,396 $33,864 $112,608

Maintenance cost at $0.60 $10,914 $13,260 $15,198 $16,932 $56,304

Total variable cost $47294 $57,460 $65,858 $73,372 $243,984

Fixed cost:

Supervisors salary $36,850 $36,850 $36,850 $36,850 $147,400

Depreciation $17,010 $17,010 $17,010 $17,010 $68,040

Maintenance $13,350 $13,350 $13,350 $13,350 $53,400

Total fixed cost $67,210 $67,210 $67,210 $67,210 $268,840

Total manu. overhead $114,504 $124,670 $133,068 $140,582 $512,824

Direct labor hours 18,190 22,100 25,330 28,220 93,840

Manufacturing overhead rate per direct labor hour $5.46

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