Answer:
Instructions are listed below
Explanation:
Giving the following information:
Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.
Variable overhead costs per direct labor hour:
indirect materials $0.80;
indirect labor $1.30;
maintenance $0.70.
Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.
Manufacturing overhead budget:
First-quarter: (10400 units)
Indirect materials= (0.80*1.7)*10400= $14144
Indirect labor=(1.3*1.7)*10400= 22984
Maintenance= (0.70*1.7)*10400= 12376
Total variable cost= 49504
Fixed costs:
supervisory salaries= $36,580
depreciation= $17,620
maintenance= $13,700.
Total fixed cost= $67900
Total first quarter= $117,404
Second-quarter: (12400 units)
Indirect materials= (0.80*1.7)*12400 = $16864
Indirect labor=(1.3*1.7)*12400 = 27404
Maintenance= (0.70*1.7)*12400 = 14756
Total variable cost= 59024
Fixed costs:
Total fixed cost= $67900
Total cost second quarter= 126,924
Third-quarter: (14200 units)
Indirect materials= (0.80*1.7)*14200 = $19312
Indirect labor=(1.3*1.7)*14200 = 31382
Maintenance= (0.70*1.7)*14200 = 16898
Total variable cost= 67592
Fixed costs:
Total fixed cost= $67900
Total cost third quarter= 135492
Fourth quarter: (16600 units)
Indirect materials= (0.80*1.7)*16600 = $22576
Indirect labor=(1.3*1.7)*16600 = 36686
Maintenance= (0.70*1.7)*16600 = 19754
Total variable cost= 79016
Fixed costs:
Total fixed cost= $67900
Total cost fourth quarter= 146916
Total cost of the year= 117,404 + 126,924 + 135,492 + 146,916= $526,736
