Question

Venus Candy Company budgeted the following costs for anticipated production for July 2016:

Advertising expenses	$277,310
Manufacturing supplies	15,200
Power and light	45,330
Sales commissions	310,050
Factory insurance	26,400
Production supervisor wages	133,320
Production control wages	34,660
Executive officer salaries	282,640
Materials management wages	38,130
Factory depreciation	21,600

Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Venus Candy Company
Factory Overhead Cost Budget
For the Month Ending July 31, 2016
Variable factory overhead costs:
	$
Total variable factory overhead costs		$
Fixed factory overhead costs:
	$
Total fixed factory overhead costs
Total factory overhead costs		$

Answer 1

Factory overhead cost budget, separating variable and fixed costs is as prepared below:

Venus Candy Company
Factory Overhead Cost Budget
For the Month Ending July 31, 2016
Variable factory overhead costs:
Manufacturing supplies	15,200
Power and Light	45,330
Production supervisor wages	133,320
Production control wages	34,660
Materials management wages	38,130
Total variable factory overhead costs		266,640
Fixed factory overhead costs:
Factory Insurance	26,400
Factory depreciation	21,600
Total fixed factory overhead costs		48,000
Total factory overhead costs		314,640