In this module, the readings discussed depreciation and income taxes. It is essential to understand these topics so that correct after-tax engineering economy evaluations of proposed projects may be conducted. Discuss and explain how/why these concepts regarding current federal income tax laws are in place: (choose one of the following) taxable income, effective income tax rates, taxation of ordinary income, and gains and losses on disposal of assets. After posting your response, review your classmates' posts and make thoughtful and substantive responses to at least two others by the posted due date.

The direct labor budget of yuvwell corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st quarter 2nd quarter 3rd quarter 4th quarterbudgeted direct labor-hours 11,200 9,800 10,100 10,900the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter.required: 1. prepare the company’s manufacturing overhead budget for the upcoming fiscal year.2. compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.