Question

# All budgeted overhead costs, except for budgeted fixed overhead, are shown. 3rd Quarter 4th quarter Budgeted...

 3rd Quarter 4th quarter Budgeted units of production 6,000 7,500 Budgeted variable overhead costs 15,000 18,750 Budgeted fixed overhead costs ? ? Budgeted amortization including in total overhead 3,000 3,000 Budgeted cash disbursements for total overhead 20,000 23,750

1. a) What is the amount of budgeted fixed overhead?

a.     \$8,000

b.     \$6,000

c.     \$9,000

d.     \$3,000

b) Explain why and how it is calculated for the 1st and 2nd Quarters:

a). For 3rd Quarter:
Total Budgeted overhead = Budgeted cash disbusements + Budgeted amortisation
= 20000 + 3000 = 23000
Budgeted Fixed overhead = 23000 - 15000 = 8000

For 4th Quarter:
Total Budgeted overhead = 23750+ 3000 = 26750
Budgeted fixed overhea = 8000
Variable overhead = 26750 - 8000 = 18750 .

I don't get the requirement of b) i.e for 1st and 2nd Quarter. while nothing is given in the question related to it.