Thread Company is preparing its manufacturing overhead budget for 2016. Relevant data consist of the following.
Units to be produced (by quarters): 10000 12000 14000 16000.
Direct labor: Time is 1 hour per unit.
Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.20; and maintenance $0.50.
Fixed overhead costs per quarter: Supervisory salaries $42000; depreciation $16000; and maintenance $12000.
Instructions
Prepare the manufacturing overhead budget for the year showing quarterly data.

Question

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The Answer of Thread Company is preparing its manufacturing overhead budget for 2016. Relevant data consist of the following.
Units to be produced (by quarters): 10000 12000 14000 16000.
Direct labor: Time is 1 hour per unit.
Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.20; and maintenance $0.50.
Fixed overhead costs per quarter: Supervisory salaries $42000; depreciation $16000; and maintenance $12000.
Instructions
Prepare the manufacturing overhead budget for the year showing quarterly data.

Thread Company Is Preparing Its Manufacturing Overhead Budget for 2016