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{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Direct Labor Hours", "Factory Overhead Budget", "Variable Overhead Rate", "Fixed Overhead Allocation" ], "new_concepts": [], "current_concepts": [ "Direct Labor Hours", "Factory Overhead Budget", "Variable Overhead Rate", "Fixed Overhead Allocation" ] } ## Calculate direct labor hours needed Using the *Direct Labor Hours* knowledge point $$ \begin{aligned} &\text{April: } 510 \text{ units} \times 0.3 \text{ hours/unit} = 153 \text{ hours}\ &\text{May: } 640 \text{ units} \times 0.3 \text{ hours/unit} = 192 \text{ hours}\ &\text{June: } 610 \text{ units} \times 0.3 \text{ hours/unit} = 183 \text{ hours} \end{aligned} $$ ## Calculate budgeted variable overhead Using the *Variable Overhead Rate* knowledge point $$ \begin{aligned} &\text{Variable Overhead Rate} = \$27 \text{ per direct labor hour}\ &\text{April: } 153 \text{ hours} \times \$27/\text{hour} = \$4,131\ &\text{May: } 192 \text{ hours} \times \$27/\text{hour} = \$5,184\ &\text{June: } 183 \text{ hours} \times \$27/\text{hour} = \$4,941 \end{aligned} $$ ## Determine budgeted fixed overhead Using the *Fixed Overhead Allocation* knowledge point $$ \begin{aligned} &\text{Budgeted Fixed Overhead} = \$8,700 \text{ per month}\ &\text{April: } \$8,700\ &\text{May: } \$8,700\ &\text{June: } \$8,700 \end{aligned} $$ ## Calculate budgeted total factory overhead Using the *Factory Overhead Budget* knowledge point $$ \begin{aligned} &\text{Budgeted Total Factory Overhead} = \text{Budgeted Variable Overhead} + \text{Budgeted Fixed Overhead}\ &\text{April: } \$4,131 + \$8,700 = \$12,831\ &\text{May: } \$5,184 + \$8,700 = \$13,884\ &\text{June: } \$4,941 + \$8,700 = \$13,641 \end{aligned} $$ | Item | April | May | June | | :--- | :---: | :---: | :---: | | **Direct labor hours needed** | 153 | 192 | 183 | | **Budgeted variable overhead** | \$4,131 | \$5,184 | \$4,941 | | **Budgeted fixed overhead** | \$8,700 | \$8,700 | \$8,700 | | **Budgeted total factory overhead** | \$12,831 | \$13,884 | \$13,641 | { "subject": "Business", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Business", "Accounting", "Factory Overhead Budget" ] }

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Question

Explanation:

Calculate direct labor hours needed

Calculate budgeted variable overhead

Determine budgeted fixed overhead

Calculate budgeted total factory overhead

Answer:

Item	April	May	June
Budgeted variable overhead	\$4,131	\$5,184	\$4,941
Budgeted fixed overhead	\$8,700	\$8,700	\$8,700
Budgeted total factory overhead	\$12,831	\$13,884	\$13,641