Question

Factory Overhead Cost Budget

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

Advertising expenses	$259,400
Manufacturing supplies	14,220
Power and light	42,400
Sales commissions	290,020
Factory insurance	24,690
Production supervisor wages	124,710
Production control wages	32,420
Executive officer salaries	264,390
Materials management wages	35,670
Factory depreciation	20,210

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:
Manufacturing supplies	$
Power and light
Production supervisor wages
Production control wages
Materials management wages
Total variable factory overhead costs		$
Fixed factory overhead costs:
Factory insurance	$
Factory depreciation
Total fixed factory overhead costs
Total factory overhead costs		$

2.

Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget.

	Rumble		Thunder
Estimated inventory (units), June 1	278		77
Desired inventory (units), June 30	319		67
Expected sales volume (units):
East Region	4,100		4,600
West Region	5,000		4,350
Unit sales price	$115		$185

a. Prepare a sales budget.

Sonic Inc.
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model Rumble:
East Region		$	$
West Region
Total			$
Model Thunder:
East Region		$	$
West Region
Total			$
Total revenue from sales			$

Answer 1

Preparation of factory overhead budget -

Sweet tooth company
Factory overhead cost budget
for the month ending august 31
variable factory overhead costs:	$
manufacturing supplies	14220
power and light	42400
production supervisor wages	124710
production control wages	32420
materials management wages	35670
Total variable factory overhead costs	249420
Fixed factory overhead costs:
factory insurance	24690
factory depriciation	20210
total fixed factory overhead costs	44900
Total factory overhead costs	294320

2. Preparation of Sales Budget -

Sonic Inc.
Sales Budget
For the month Ending June 30
Product and area	Unit sales volume	Unit selling price	Total sales
Model Rumble:
East Region	4100	115	471500
West Region	5000	115	575000
Total			1046500
Model Thunder:
East Region	4600	185	851000
West Region	4350	185	804750
Total			1655750
Total Revenue from sales			2702250

(b) Preparation of Production Budget -

Sonic Inc.
Production Budget
For the month Ending June 30
	Rumble	Thunder
sales	9100	8950
Desired inventory	319	67
Total required inventory	9419	9017
Estimated inventory	278	77
Production Qty.	9141	8940

In case of further clarification required please comment.