Question

Factory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $261,810 14,350 Manufacturing supplies Power and light Sales commissions Factory insurance 42,800 289,360 Production supervisor wages Production control wages 24,920 125,870 32,730 266,840 35,990 Executive officer salaries Materials management wages Factory depreciation 20,390 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 Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs:

Answer 1

Variable factory overhead costs:
Manufacturing supplies	14350
Power and light	42800
Production supervisor wages	125870
Production control wages	32730
Materials management wages	35990
Total Variable factory overhead costs		251740
Fixed factory overhead costs:
Factory insurance	24920
Factory depreciation	20390
Total Fixed factory overhead costs		45310
Total factory overhead costs		297050