I ONLY NEED PART E AND F 39. Budgeting for Sales, Production, Direct Materials,
ID: 2562303 • Letter: I
Question
I ONLY NEED PART E AND F
39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) e. Manufacturing overhead budget Sports Bars, Inc. Manufacturing Overhead Budget Year Ending December 31 arter Year Units to be prouced (from production budget) Variable overhead costs: Indirect materials ( Indirect labor ( per unit) per unit) per unit) Other Total variable overhead costs Fixed overhead costs: Salaries Other Depreciation Total fixed overhead costs Total overhead costs Deduct depreciation Cash payments for overhead Manufacturing overhead per unitExplanation / Answer
e. Manufacturing Overhead Budget
Working:
f.
Production for each year is increasing but the inventory is maintained at the same level so basis the production increase and the sale increase the level of inventory should also be increased.
Sports bar Inc. manufacturing Overhead Budget Year Ending December 31 Quarter 1 2 3 4 Year Units to be produced 80,600 84,600 89,350 95,450 350,000 Variable overhead Costs Indirect material (0.2 per unit) 16,120 16,920 17,870 19,090 70,000 Indirect labour (0.15per unit) 12,090 12,690 13,403 14,318 52,500 Other (0.10 per unit) 8,060 8,460 8,935 9,545 35,000 Total variable overhead costs 36,270 38,070 40,208 42,953 157,500 Fixed overhead costs Salaries 80,000 80,000 80,000 80,000 320,000 Other 70,000 70,000 70,000 70,000 280,000 Depreciation 55,625 55,625 55,625 55,625 222,500 Total fixed overhead costs 205,625 205,625 205,625 205,625 822,500 Total overhead costs 241,895 243,695 245,833 248,578 980,000 Deduct depreciation -55,625 -55,625 -55,625 -55,625 -55,625 cash payment for overhead 186,270 188,070 190,208 192,953 924,375 manufacturing overhead per unit 2.31 2.22 2.13 2.02 2.64Related Questions
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