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Fresh Mint Candy Company budgeted the following costs for anticipated production for July
2008. Advertising expenses $275,000 Manufacturing supplies 14,000 Power and light 42,000
Sales Commissions 290,000 Factory Insurance 23,000 Production Supervisor Wages $125,000
Production control salaries 33,000 Executive officer salaries 205,000 Material management
salaries 29,000 Factory depreciation 17,000 Prepare a factory overhead cost budget, separating
variable and fixed costs. Assume that factor y insurance and depreciation are the only factory
fixed costs.
Solution
Hi,
Please find the detailed answer as follows:
Notes:
All other expenses are not a part of factory costs as they are not incurred in thr production of
goods.
Thanks.
Factory Overhead Cost Budget
Variable Overheads
Manufacturing Supplies 14000
Power and Light 42000
Production Supervisor Wages 125000
Production Control Salaries 33000
Total Variable Overheads 214000
Fixed Overheads
Factory Insurance 23000
Factory Depreciation 17000
Total Fixed Overheads 40000
Total Overheads 254000
Fresh Mint Candy Company budgeted the following costs for anticipated.docx

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Fresh Mint Candy Company budgeted the following costs for anticipated.docx

  • 1. Fresh Mint Candy Company budgeted the following costs for anticipated production for July 2008. Advertising expenses $275,000 Manufacturing supplies 14,000 Power and light 42,000 Sales Commissions 290,000 Factory Insurance 23,000 Production Supervisor Wages $125,000 Production control salaries 33,000 Executive officer salaries 205,000 Material management salaries 29,000 Factory depreciation 17,000 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factor y insurance and depreciation are the only factory fixed costs. Solution Hi, Please find the detailed answer as follows: Notes: All other expenses are not a part of factory costs as they are not incurred in thr production of goods. Thanks. Factory Overhead Cost Budget Variable Overheads Manufacturing Supplies 14000 Power and Light 42000 Production Supervisor Wages 125000 Production Control Salaries 33000 Total Variable Overheads 214000 Fixed Overheads Factory Insurance 23000 Factory Depreciation 17000 Total Fixed Overheads 40000 Total Overheads 254000