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Thread Company is preparing its manufacturing overhead budget for 2012.
Relevant data consist of the following.
Units to be produced (by quarters): 10,000,
12,000, 14,000, 16,000.
Direct labor: Time is 1 hour per unit.
Variable overhead costs per direct labor hour:
Indirect materials $0.90; indirect labor $1.20; and maintenance $0.50.
Fixed overhead costs per quarter: Supervisory
salaries $40,000; depreciation $16,000; and maintenance $12,000.
Instructions
Prepare the
manufacturing overhead budget for the year, showing quarterly data.
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