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Atlanta Company is preparing its manufacturing overhead budget for 2014. Relevant data consist of the following.
Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct labor: time is 1.5 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.50.
Fixed overhead costs per quarter: supervisory salaries $35,000; depreciation $15,000; and maintenance $12,000.
Instructions
Prepare the manufacturing overhead budget for the year, showing quarterly data.
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