Question

Sweet Tooth Company budgeted the following costs for anticipated production for August:

Advertising expenses	$281,080
Manufacturing supplies	15,410
Power and light	45,950
Sales commissions	310,650
Factory insurance	26,760
Production supervisor wages	135,140
Production control wages	35,140
Executive officer salaries	286,490
Materials management wages	38,630
Factory depreciation	21,890

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:
	$
Total variable factory overhead costs		$
Fixed factory overhead costs:
	$
Total fixed factory overhead costs
Total factory overhead costs		$

Answer 1

Sweet Tooth Candy Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
manufacturing Supplies	$   15,410.00
Power and light	$   45,950.00
Production supervisor's wages	$1,35,140.00
Production control wages	$   35,140.00
Material Management salaries	$   38,630.00
Total variable factory overhead costs		$2,70,270.00
Fixed factory overhead costs:
Factory Insurance	$   26,760.00
Factory Depreciation	$   21,890.00
Total fixed factory overhead costs		$   48,650.00
Total factory overhead costs		$3,18,920.00

Sales commission and advertising expense are operating expense (precisely selling expense ) not factory overhead.

Executive officer salaries are administrative expenses and not factory cost