Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,700, 12,400, 14,700, 16,300. Direct labor: Time is 1.6 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.90; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $37,280; depreciation $18,330; and maintenance $13,020.
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.) ATLANTA COMPANY Manufacturing Overhead Budget Quarter 1 2 3 4 $ $ $ $ $ > > + + $ $ Direct labor hours Manufacturing overhead rate per direct labor hour

The preparation of the manufacturing overhead budget for the year, showing quarterly data, for Atlanta Company is as follows:

ATLANTA COMPANY

Manufacturing Overhead Budget

Quarter                                                 1                 2              3               4

Production units                             10,700       12,400       14,700       16,300

Variable overhead costs:

Indirect materials $0.90               $9,630      $11,160     $13,230     $14,670

Indirect labor $1.30                        13,910        16,120         19,110        21,190

Maintenance $0.70                        7,490        8,680       10,290         11,410

Total variable overhead costs $31,030   $35,960    $42,630     $47,270

Fixed overhead costs:

Supervisory salaries                  $37,280    $37,280     $37,280    $37,280

Depreciation                                 18,330       18,330        18,330        18,330

Maintenance                                13,020       13,020        13,020        13,020

Total fixed overhead costs    $68,630    $68,630    $68,630    $68,630

Total overhead costs             $99,660  $104,590    $111,260    $115,900

Direct labor hours (1.6)              17,120        19,840       23,520        26,080

Manufacturing overhead rate

 per direct labor hour               $5.82         $5.27           $4.73          $4.44

What is the manufacturing overhead budget?

The manufacturing overhead budget is a budget for all manufacturing costs except direct materials and direct labor.

The manufacturing overhead budget will show the total variable and fixed overhead costs with details.

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