Question

Factory Overhead Cost Budget

Sweet Tooth Company budgeted the following costs for anticipated production for August:

Advertising expenses	$259,400
Manufacturing supplies	14,220
Power and light	42,400
Sales commissions	290,020
Factory insurance	24,690
Production supervisor wages	124,710
Production control wages	32,420
Executive officer salaries	264,390
Materials management wages	35,670
Factory depreciation	20,210

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

Sweet Tooth Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
Manufacturing supplies	$
Power and light
Production supervisor wages
Production control wages
Materials management wages
Total variable factory overhead costs		$
Fixed factory overhead costs:
Factory insurance	$
Factory depreciation
Total fixed factory overhead costs
Total factory overhead costs		$

Answer 1

Sweet Tooth Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
Manufacturing supplies	14220
Power and light	42400
Production supervisor wages	124710
Production control wages	32420
Materials management wages	35670
Total variable factory overhead costs		249420
Fixed factory overhead costs:
Factory insurance	24690
Factory depreciation	20210
Total fixed factory overhead costs		44900
Total factory overhead costs		294320