Question
Factory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August:...
Factory Overhead Cost Budget
Sweet Tooth Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $280,180 |
| Manufacturing supplies | 15,360 |
| Power and light | 45,800 |
| Sales commissions | 309,660 |
| Factory insurance | 26,670 |
| Production supervisor wages | 134,700 |
| Production control wages | 35,020 |
| Executive officer salaries | 285,560 |
| Materials management wages | 38,520 |
| Factory depreciation | 21,820 |
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 | $ | |
Answers
Sweet Tooth Company Factory overhead cost budget For the month ending August 31 Variable factory overhead cost: Manufacturing supplies $ 15,360 Power and light $ 45,800 Production supervisor's wages $ 1,34,700 Production control wages $ 35,020 Material management wages $ 38,520 Total variable factory overhead cost $ 2,69,400 Fixed factory overhead cost: Factory insurance $ 26,670 Factory Depreciation $ 21,820 Total Fixed factory overhead cost $ 48,490 Total factory overhead cost $ 3,17,890
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