Question

Factory Overhead Cost Budget

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

Advertising expenses	$258,530
Manufacturing supplies	14,170
Power and light	42,260
Sales commissions	282,490
Factory insurance	24,610
Production supervisor wages	124,300
Production control wages	32,320
Executive officer salaries	263,510
Materials management wages	35,540
Factory depreciation	20,140

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:
	$
Total variable factory overhead costs		$
Fixed factory overhead costs:
	$
Total fixed factory overhead costs
Total factory overhead costs		$

Answer 1

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

Variable factory overhead costs:
Manufacturing supplies	14170
Power and light	42260
Production supervisor wages	124300
Production control wages	32320
Materials management wages	35540
Total variable factory overhead costs		248590
Fixed factory overhead costs:
Factory insurance	24610
Factory depreciation	20140
Total fixed factory overhead costs		44750
Total factory overhead costs		293340