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7 November, 06:55

At Jamal's Juices, each smoothie requires 16 oz of juice, which costs $0.15/oz. It takes 0.10 hrs of direct labor to make smoothies, at $9.35 per DLH. Variable overhead costs $1.15/smoothie, and fixed costs total $98,000 per year. They expect to produce 72,000 smoothies next year. Calculate the manufacturing overhead budget for next yea

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  1. 7 November, 09:13
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    direct materials = 16 oz x $0.15 per oz = $2.40

    direct labor = $9.35 x 0.10 hrs = $0.94

    variable overhead = $1.15 per smoothie

    fixed costs = $98,000

    estimated production per year = 72,000

    Jamal's Juices

    Manufacturing Overhead Budget

    For the Year 202x

    Per unit Total

    Variable manufacturing overhead $1.15 $82,800

    Fixed manufacturing overhead $1.3611 $98,000

    Total $2.5111 $180,800

    Generally the budget would be more specific, e. g. which costs are included under variable MOH or fixed MOH, but in this case we only should include the total variable and fixed costs.
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