BA225 Managerial Accounting: Problem 1 - Frizell Company is preparing its manufacturing
BA225 Managerial Accounting Module 5 Exercises
Problem 1 Frizell Company is preparing its manufacturing overhead budget for 2011. Relevant data consist of the following. · Units to be produced (by quarters): 10,000, 12,000, 14,000, and 16,000 · Direct labor: Time is 1.5 hours per unit · Variable overhead costs per direct labor hour: Indirect materials $0.70; indirect labor $1.20; and maintenance $0.50 · Fixed overhead costs per quarter: Supervisory salaries $35,000; depreciation $16,000; and maintenance $12,000
Prepare the manufacturing overhead budget for the year, showing quarterly data.