Sandhill Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,700, 13,000, 14,900, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.60. Fixed overhead costs per quarter: supervisory salaries $36,850; depreciation $17,010; and maintenance $13,350. 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.) SANDHILL COMPANY Manufacturing Overhead Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $ $ Direct labor hours Manufacturing overhead rate per direct labor hour $

Answer :

Total manufacturing overhead = $512,824

Direct labor hours = 93,840

Manufacturing overhead rate per direct labor hour = $5.46

Explanation :

As per the data given in the question,

                                                 Sandhill company

                                    Manufacturing Overhead Budget

Particulars Quarter

                   1                                2                    3                        4          Year

Units produced 10,700           13,000              14,900         16,600      55,200

Variable cost:

Indirect material at $0.80 $14,552    $17,680        $20,264 $22,576   $75,072

indirect labor at $1.20 $21,828   $26,520     $30,396      $33,864    $112,608

Maintenance cost at $0.60 $10,914       $13,260      $15,198         $16,932 $56,304

Total variable cost    $47294        $57,460        $65,858         $73,372 $243,984

Fixed cost:

Supervisors salary $36,850     $36,850       $36,850         $36,850         $147,400

Depreciation $17,010     $17,010         $17,010       $17,010          $68,040

Maintenance $13,350   $13,350         $13,350      $13,350         $53,400

Total fixed cost $67,210 $67,210       $67,210       $67,210         $268,840

Total manu. overhead $114,504   $124,670     $133,068     $140,582 $512,824

Direct labor hours 18,190 22,100 25,330 28,220 93,840

Manufacturing overhead rate per direct labor hour $5.46

d,

answer; balance sheets;