Saxon Company uses a variable manufacturing overhead rate of $3 per unit. Fixed manufacturing overhead is $50,000 per month, including $20,000 of non-cash costs like depreciation. The document presents Saxon Oil & Gas Drilling Co.'s manufacturing overhead budget for 2009, showing overhead by quarter and for the full year, which totals $380,900 to be allocated over the 60,300 budgeted direct labor hours at a predetermined overhead rate of $6.32 per hour.

3. Saxon Company uses a
variable manufacturing
overhead rate of $3 per
unit

4.  Fixed manufacturing overhead is
$50,000 per month and includes
$20,000 of noncash costs
(primarily depreciation of plant
assets).

5.  Saxson Oil & Gas Drilling Co..
Manufacturing overhead Budget
For the year Ended Dec 31,2009
Quarter
1 2 3 4 year
Budgeted direct labor-hours ( Schedule 04 ) 7,200 18,600 22,800 11 ,700 60,300
Variable Manufacturing overhead rate $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00
Variable Manufacturing overhead $ 21,600 $ 55,800 $ 68,400 $ 35,100 $ 180,900

6. Saxson Oil & Gas Drilling Co..
Manufacturing overhead Budget
For the year Ended Dec 31,2009
1 2 3 4 year
Budgeted direct labor-hours ( Schedule 04 ) 7,200 18,600 22,800 11 ,700 60,300
Variable Manufacturing overhead rate $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00
Variable Manufacturing overhead $ 21,600 $ 55,800 $ 68,400 $ 35,100 $ 180,900
Fixed Manufacturing overhead 50,000 50,000 50,000 50,000 200,000
Total Manufacturing overhead 71,600 105,800 118,400 85,100 380,900
Less depreciation 10,000 10,000 10,000 10,000 40,000
Cash disbursements for manufacturing
overhead 61,600 95,800 108,400 75,100 340,900

7.  Total manufacturing overhead $ 380,900
 Budgeted direct labor-hours 60,300
 (380900 60,300 )
 Predetermined overhead rate for the year $ 6.32