Question

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following.

Units to be produced (by quarters): 10,500, 12,400, 14,700, 16,700.

Direct labor: Time is 1.5 hours per unit.

Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.60.

Fixed overhead costs per quarter: supervisory salaries $36,820; depreciation $18,270; and maintenance $14,100.

Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)

ATLANTA COMPANY Manufacturing Overhead Budget For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020
	Quarter
		1		2		3		4		Year

Answer 1

ATLANTA COMPANY Manufacturing Over head Budget For the Year Ending December 31, 2020
	Quarter
	1	2	3	4	Year
Variable overhead cost
Indirect material	15750*.80=12600	18600*.8= 14880	22050*.8= 17640	25050*.8= 20040	65160
Indirect labor	15750*1.30=20475	18600*1.3= 24180	22050*1.3= 28665	25050*1.3= 32565	105885
maintenance	15750*.6=9450	18600*.6= 11160	22050*.6= 13230	25050*.6= 15030	48870
Total variable overhead cost [A]	42525	50220	59535	67635	219915
Fixed overhead cost
supervisory salaries	36820	36820	36820	36820	147280
Depreciation	18270	18270	18270	18270	73080
Maintenance	14100	14100	14100	14100	56400
Total fixed overhead cost [B]	69190	69190	69190	69190	276760
Total overhead cost	111715	119410	128725	136825	496675

working :

	1	2	3	4
Units produced [i]	10500	12400	14700	16700
Direct labor hours per unit [ii]	1.5	1.5	1.5	1.5
Total Direct labor hours [i*ii]	15750	18600	22050	25050