Question

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

Advertising expenses	$255,440
Manufacturing supplies	14,000
Power and light	41,760
Sales commissions	285,610
Factory insurance	24,320
Production supervisor wages	122,810
Production control wages	31,930
Executive officer salaries	260,360
Materials management wages	35,120
Factory depreciation	19,890

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:
	$fill in the blank 2
	fill in the blank 4
	fill in the blank 6
	fill in the blank 8
	fill in the blank 10
Total variable factory overhead costs		$fill in the blank 11
Fixed factory overhead costs:
	$fill in the blank 13
	fill in the blank 15
Total fixed factory overhead costs		fill in the blank 16
Total factory overhead costs		$fill in the blank 17

Answer 1

Solution:

Sweet Tooth Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
Manufacturing supplies	14000
Power and light	41760
Production supervisor wage	122810
Production control wages	31930
Materials management wage	35120
Total variable factory overhead costs		245620
Fixed factory overhead costs:
Factory insurance	24320
Factory depreciation	19890
Total fixed factory overhead costs		44210
Total factory overhead costs		289830