Question

Factory Overhead Cost Budget Venus Candy Company budgeted the following costs for anticipated production for July 2016: Advertising expenses $290,760 Manufacturing supplies 15,940 Power and light 47,530 Sales commissions 321,360 Factory insurance 27,680 Production supervisor wages 139,790 Production control wages 36,350 Executive officer salaries 296,350 Materials management wages 39,970 Factory depreciation 22,640 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Answer 1

	Factory Overhead Cost Budget
	For the Month Ending July 31, 2016
Variable factory overhead costs:
Manufacturing supplies	15940
Power and light	47530
Production supervisor wages	139790
Production control wages	36350
Materials managementwages	39970
Total Variable factory overhead costs		279580
Fixed factory overhead costs:
Factory insurance	27680
Factory depreciation	22640
Total fxed Factory overhead costs		50320
Total Factory overhead costs		329900