From the Following Details Provided by NutShell,Inc

question 62

Essay

From the following details provided by NutShell,Inc.,prepare the manufacturing overhead budget for the year.Also,calculate the predetermined overhead allocation rate,using direct labor hours as the allocation base.
$\begin{array}{|l|r|r|r|r|}\hline&\text { First } &\text { Second } & \text { Third } & \text { Fourth } \\&\text { Quarter }&\text { Quarter } & \text { Quarter }& \text { Quarter }\\\hline \text { Budgeted production units } & 15,000 & 18,00 & 21,000 & 24,000 \\\hline \text { Variable overhead cost per urit } & \$ 45 & \$ 45 & \$ 45 & \$ 45 \\\hline \text { Fixed overhead costs: } & & & & \\\hline \text { Depreciation } & \$ 3,000 & \$ 3,000 & \$ 3,000 & \$ 3,000 \\\hline \text { Rent } & \$ 5,000 & \$ 5,750 & \$ 6,250 & \$ 7,250 \\\hline \text { Direct Labor Hours } & 12,500 & 14,500 & 17,200 & 12,800 \\\hline\end{array}$

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