For Eckert Inc. variable manufacturing overhead costs are expected to be $20,000

Question

For Eckert Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2011 with $4,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.

ECKERT INC.
Manufacturing Overhead Budget

For the Year Ending December 31, 2011


Quarter



1


2


3


4


Year
Variable costs $ $ $ $ $
Fixed costs









Total manuf. overhead

$


$


$


$


$

Link to Text 1

Explanation / Answer

ECKERT INC. Manufacturing Overhead Budget For the Year Ending December 31, 2011 Quarter Variable cost Fixed cost 1 20000 35000 2 24000 35000 3 28000 35000 4 32000 35000 Total manufacturing overhead Quarter 1 $55000 2 $59000 3 $63000 4 $67000 total = $244,000

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