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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Definitions:

Certify

To officially recognize, verify, or declare something as true, accurate, or in compliance with certain standards.

Sufficient Funds

Availability of enough money or resources to meet financial obligations or complete transactions.

Certificate Of Deposit

A document whereby a bank promises to pay a payee a certain amount of money at a future time.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.