Ask Question
BusinessBusiness
18 November, 20:40

Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters) : 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700. 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.)

+4
Answers (1)
  1. 18 November, 20:52
    0
    Instructions are listed below

    Explanation:

    Giving the following information:

    Units to be produced (by quarters) : 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.

    Variable overhead costs per direct labor hour:

    indirect materials $0.80;

    indirect labor $1.30;

    maintenance $0.70.

    Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.

    Manufacturing overhead budget:

    First-quarter: (10400 units)

    Indirect materials = (0.80*1.7) * 10400 = $14144

    Indirect labor = (1.3*1.7) * 10400 = 22984

    Maintenance = (0.70*1.7) * 10400 = 12376

    Total variable cost = 49504

    Fixed costs:

    supervisory salaries = $36,580

    depreciation = $17,620

    maintenance = $13,700.

    Total fixed cost = $67900

    Total first quarter = $117,404

    Second-quarter: (12400 units)

    Indirect materials = (0.80*1.7) * 12400 = $16864

    Indirect labor = (1.3*1.7) * 12400 = 27404

    Maintenance = (0.70*1.7) * 12400 = 14756

    Total variable cost = 59024

    Fixed costs:

    Total fixed cost = $67900

    Total cost second quarter = 126,924

    Third-quarter: (14200 units)

    Indirect materials = (0.80*1.7) * 14200 = $19312

    Indirect labor = (1.3*1.7) * 14200 = 31382

    Maintenance = (0.70*1.7) * 14200 = 16898

    Total variable cost = 67592

    Fixed costs:

    Total fixed cost = $67900

    Total cost third quarter = 135492

    Fourth quarter: (16600 units)

    Indirect materials = (0.80*1.7) * 16600 = $22576

    Indirect labor = (1.3*1.7) * 16600 = 36686

    Maintenance = (0.70*1.7) * 16600 = 19754

    Total variable cost = 79016

    Fixed costs:

    Total fixed cost = $67900

    Total cost fourth quarter = 146916

    Total cost of the year = 117,404 + 126,924 + 135,492 + 146,916 = $526,736
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in year 2 dollars.
Answers (1)
Once a company has prepared an adjusted trial balance it is ready to prepare financial statements. Which financial statement is prepared first, second, then third? a.
Answers (1)
Scott and Andy provide support and learning opportunities, coach, and guide their employees. Andy and Scott discuss their approach at Barcelona as one that is empowering. "This is your restaurant," Andy tells new managers.
Answers (1)
Brief Exercise 4-1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.
Answers (1)
The market price for tennis balls is currently $2 At this price, a firm is willing and able to produce 80 tennis balls. However, at this level of production, the firm experiences an average total cost of $0.50 per tennis ball.
Answers (1)
New Questions in Business
A child in a child passenger restraint system (car seat) should.
Answers (1)
Compare items that are exempt and nonexempt from Chapter 7 fillings. (does A B C or D go with 1 or 2) (each letter must go with one) (1) Exempt (2) Nonexempt (A) second car (B) pension (C) household appliances (D) family heirlooms
Answers (1)
A structure within which executives, managers, specialists, and workers are broken out is commonly known as what type of structure?
Answers (1)
What way of calculating ROI makes it easiest to compare investments?
Answers (1)
Select the correct answer. Which assumption is a factor in Ricardo's Theory of International Trade? A. trade flow is restricted across borders B. trade laws are different in different nations C. labor is an irrelevant factor of production D.
Answers (1)
Home » Business » Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters) : 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.
Sign Up Forgot Password?