The direct labor budget of Faier Corporation for the upcoming year contains the following details concerning budgeted direct labor-hours. The company's variable manufacturing overhead rate is $3.50 per direct labor-hour, and the company's fixed manufacturing overhead is $65,000 per quarter. The only noncash item included in the fixed manufacturing overhead is depreciation which is $22,000 per quarter.
Required:
Prepare Faier Corporation's manufacturing overhead budget for the upcoming fiscal year. Show both manufacturing overhead expense and cash disbursements for manufacturing overhead.

Question

The direct labor budget of Faier Corporation for the upcoming year contains the following details concerning budgeted direct labor-hours.  The company's variable manufacturing overhead rate is $3.50 per direct labor-hour, and the company's fixed manufacturing overhead is $65,000 per quarter. The only noncash item included in the fixed manufacturing overhead is depreciation which is $22,000 per quarter.
Required:
Prepare Faier Corporation's manufacturing overhead budget for the upcoming fiscal year. Show both manufacturing overhead expense and cash disbursements for manufacturing overhead.

Quizplus · Accepted Answer

The Answer of The direct labor budget of Faier Corporation for the upcoming year contains the following details concerning budgeted direct labor-hours.  The company's variable manufacturing overhead rate is $3.50 per direct labor-hour, and the company's fixed manufacturing overhead is $65,000 per quarter. The only noncash item included in the fixed manufacturing overhead is depreciation which is $22,000 per quarter.
Required:
Prepare Faier Corporation's manufacturing overhead budget for the upcoming fiscal year. Show both manufacturing overhead expense and cash disbursements for manufacturing overhead.

The Direct Labor Budget of Faier Corporation for the Upcoming