Exercise 21-11 atlanta company is preparing its manufacturing overhead budget for 2017. relevant data consist of the following. 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; and maintenance $0.70. fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700. 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.)

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

answer production department;