Exercise 5 (Manufacturing Overhead Budget) The direct labor budget of Kiko Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours. 1st quarter...

Exercise 5 (Manufacturing Overhead Budget)

The direct labor budget of Kiko Corporation for the upcoming fiscal year

contains the following details concerning budgeted direct labor-hours.

1st quarter     2nd quarter   3rd quarter    4th quarter

Budgeted direct labor

hour...........    5,000              4,800              5,200              5,400

The company's variable manufacturing overhead rate is P1.75 per direct labor hour and the company's fixed manufacturing overhead is P35,000 per quarter. The only noncash item included in the fixed manufacturing overhead is depreciation, which is P15,000 per quarter.

Required:

1. Construct the company’s manufacturing overhead budget for the

upcoming fiscal Year.

1. Compute the company’s manufacturing overhead rate (including both

variable and fixed manufacturing overhead) for the upcoming fiscal year.

Round off to the nearest whole centavos.