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Company C's variable manufacturing overhead rate is $2.00 per direct labor-hour and the company's fixed manufacturing overhead is $40,250 per quarter. The only non-cash expense included in the fixed overhead is depreciation of $12,000 per quarter.
The budgeted direct labor-hours for each quarter are as followed:
First
Second
Third
Fourth
Budgeted direct labor hours
5,000
6,500
6,000
5,500
Required:
a) Construct company's manufacturing overhead budget for the year.
b) Compute the company's manufacturing overhead rates (variable, fixed and total) for the year.
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