Question

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,800, 12,400, 14,900, 16,200. 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 $0.50. Fixed overhead costs per quarter: supervisory salaries $37,500; depreciation $18,390; and maintenance $13,960. Prepare the manufacturing overhead budget for the year, showing quarterly data.

Answer 1

The manufacturing overhead budget for the year - Each Quarter

Step-by-step explanation:

Make sure you find the Total Variable Cost for each quarter

Total Variable Cost = Units Produced x Unit Variable Costs

Fixed Costs are the same for each quarter. Add these to the Total Variable Costs calculated above.