Question

Preparing an Overhead Budget

Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are:

January	13,140
February	12,300
March	15,075

The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,890 per month.

Required:

Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar.

Patrick Inc.
Overhead Budget
For the Coming First Quarter
Overhead:	January	February	March	Total
Total direct labor hrs
Variable overhead rate	$	$	$	$
Total variable overhead	$	$	$	$
Add: Fixed overhead
Total overhead	$	$	$	$

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Answer 1

Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar.

Patrick Inc.
Overhead Budget
For the Coming First Quarter
Overhead:	January	February	March	Total
Total direct labor hrs	13140	12300	15075	40515
Variable overhead rate	$0.70	$0.70	$0.70	$0.70
Total variable overhead	$9198	$8610	$10553	$28361
Add: Fixed overhead	2890	2890	2890	8670
Total overhead	$12088	$11500	$13443	$37031