Manufacturing overhead

Manufacturing overhead - Quarter 1 Quarter 2 Quarter 3...

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Manufacturing overhead . The  manufacturing overhead budget  identifies the expected variable  and fixed overhead costs for the year (or other period) being budgeted. The separation between  fixed and variable costs is important because the Pickup Trucks Company uses a predetermined  overhead rate for applying overhead to units produced. In preparing its budget, the Pickup Trucks  Company has identified the following variable and fixed costs: indirect materials $0.50 per unit,  indirect labor $1.00 per unit, maintenance $0.75 per unit, annual depreciation $12,000, supervisory  salaries $24,000, and property taxes and insurance $21,000. The budget by quarter is:  Pickup Trucks Company Manufacturing Overhead Budget For the Year 20X1
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Unformatted text preview: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Variable Costs Indirect Materials $ 7,650 $ 9,325 $14,900 $18,238 $ 50,113 Indirect Labor 15,300 18,650 29,800 36,475 100,225 Maintenance 11,475 13,988 22,350 27,356 75,169 Total Variable Costs 34,425 41,963 67,050 82,069 225,507 Fixed Costs Supervisory Salaries 3,000 3,000 3,000 5,700 14,700 Property Taxes and Insurance 6,000 6,000 6,000 6,000 24,000 Depreciation 5,250 5,250 5,250 5,250 21,000 Total Fixed Costs 14,250 14,250 14,250 16,950 59,700 Total Manufacturing Overhead $48,675 $56,213 $81,300 $99,019 $285,207 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total Direct Labor Hours * 7,650 9,325 14,900 18,238 50,113 Predetermined Overhead Rate $5.70...
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This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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Manufacturing overhead - Quarter 1 Quarter 2 Quarter 3...

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