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374 Chapter 8 Construct the company's direct labor budget for the upcoming fiscal year, assuming that the 2. direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2.60 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. EXERCISE 8-5 Manufacturing Overhead Budget [LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow ing details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,200 to 0 0 The company's variable manufacturing overhead rate is $3.25 per direct labor hour and the com pany'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: 1 Construct the company's manufacturing overhead budget for the upcoming fiscal year. 2. 2 Compute the company's manufacturing overhead rate (including hoth variable and fised manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent

374 Chapter 8 Construct the company's direct labor budget for the upcoming fiscal year, assuming that the 2. direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2.60 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. EXERCISE 8-5 Manufacturing Overhead Budget [LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow ing details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,200 to 0 0 The company's variable manufacturing overhead rate is $3.25 per direct labor hour and the com pany'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: 1 Construct the company's manufacturing overhead budget for the upcoming fiscal year. 2. 2 Compute the company's manufacturing overhead rate (including hoth variable and fised manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Budgeting
Section: Chapter Questions
Problem 21.1BPR: Forecast sales volume and sales budget Sentinel systems Inc. prepared the following sales budget for...
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374 Chapter 8 Construct the company's direct labor budget for the upcoming fiscal year, assuming that the 2. direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2.60 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. EXERCISE 8-5 Manufacturing Overhead Budget [LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow ing details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,200 to 0 0 The company's variable manufacturing overhead rate is $3.25 per direct labor hour and the com pany'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: 1 Construct the company's manufacturing overhead budget for the upcoming fiscal year. 2. 2 Compute the company's manufacturing overhead rate (including hoth variable and fised manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent
Transcribed Image Text:374 Chapter 8 Construct the company's direct labor budget for the upcoming fiscal year, assuming that the 2. direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2.60 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. EXERCISE 8-5 Manufacturing Overhead Budget [LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the follow ing details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 8,200 to 0 0 The company's variable manufacturing overhead rate is $3.25 per direct labor hour and the com pany'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: 1 Construct the company's manufacturing overhead budget for the upcoming fiscal year. 2. 2 Compute the company's manufacturing overhead rate (including hoth variable and fised manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent
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