Question

Sweet Tooth Company An accounting device used to plan and control resources of operational departments and divisions.budgeted the following costs for anticipated production for August:

Advertising expenses	$284,970
Manufacturing supplies	15,620
Power and light	46,580
Sales commissions	311,370
Factory insurance	27,130
Production supervisor wages	137,010
Production control wages	35,620
Executive officer salaries	290,450
Materials management wages	39,180
Factory depreciation	22,190

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:
Advertising expenses Factory depreciation Factory insurance Manufacturing supplies Sales commissions	$
Advertising expenses Executive officer salaries Factory depreciation Power and light Sales commissions
Advertising expenses Executive officer salaries Factory depreciation Factory insurance Production supervisor wages
Advertising expenses Factory depreciation Factory insurance Production control wages Sales commissions
Advertising expenses Executive officer salaries Factory depreciation Materials management wages Sales commissions
Total variable factory overhead costs		$
Fixed factory overhead costs:
Advertising expenses Factory insurance Manufacturing supplies Production supervisor wages Sales commissions	$
Advertising expenses Executive officer salaries Factory depreciation Power and light Production supervisor wages
Total fixed factory overhead costs
Total factory overhead costs		$

Answer 1