Question

Spree Party Lights overhead expenses are:

Indirect material, pounds per unit	0.30
Indirect material, cost per pound	$2
Indirect labor hours	1
Indirect labor rate per hour	$16.50
Variable maintenance per unit	$0.70
Variable utilities per unit	$0.20
Supervisor salaries	$9,000
Maintenance salaries	$8,000
Insurance	$3,000
Depreciation	$1,400

Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,400, 3,100, and 2,800, respectively.

Spree Party Lights
Manufacturing Overhead Budget
For the Quarter Ending January - March
	January	February	March
Units to Produce
Variable Costs
?	$	$	$
?
?
?
Total Variable Manufacturing Costs	$	$	$
Fixed Costs
?	$	$	$
?
?
?
Total Fixed Manufacturing Costs	$	$	$
Total Manufacturing Overhead	$	$	$

Answer 1

Spree Party Lights
Manufacturing overhead budget
For the Quarter ending January - March
	January	February	March
Units to Produce	2,400	3,100	2,800
Variable Cost
Indirect Material Cost	$                   1,440.00	$                    1,860.00	$                      1,680.00
	(2,400 X 0.30 X $ 2)	(3,100 X 0.30 X $ 2)	(2,800 X 0.30 X $ 2)
Indirect Labor	$                 39,600.00	$                  51,150.00	$                    46,200.00
	(2,400 X 1hr X $ 16.50)	(3,100 X 1hr X $ 16.50)	(2,800 X 1hr X $ 16.50)
Variable Maintenance	$                   1,680.00	$                    2,170.00	$                      1,960.00
	(2,400 X $ 0.70)	(3,100 X $ 0.70)	(2,800 X $ 0.70)
Variable Utilities	$                      480.00	$                       620.00	$                        560.00
	(2,400 X $ 0.20)	(3,100 X $ 0.20)	(2,800 X $ 0.20)
Total Variable Manufacturing Costs	$                 43,200.00	$                  55,800.00	$                    50,400.00
Fixed Costs
Supervisor Salary	$                   9,000.00	$                    9,000.00	$                      9,000.00
Maintenance Salary	$                   8,000.00	$                    8,000.00	$                      8,000.00
Insurance	$                   3,000.00	$                    3,000.00	$                      3,000.00
Depreciation	$                   1,400.00	$                    1,400.00	$                      1,400.00
Total Fixed Manufacturing Costs	$                 21,400.00	$                  21,400.00	$                    21,400.00
Total Manufacturing overhead	$                 64,600.00	$                  77,200.00	$                    71,800.00