Venus Candy Company budgeted the following costs for anticipated production for

Question

Venus Candy Company budgeted the following costs for anticipated production for July 2016:

Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Advertising expenses $246,890 Manufacturing supplies 13,530 Power and light 40,360 Sales commissions 269,760 Factory insurance 23,500 Production supervisor wages 118,700 Production control wages 30,860 Executive officer salaries 251,630 Materials management wages 33,940 Factory depreciation 19,230

Explanation / Answer

Factory Overhead cost Budget

Particulars

Nature

Amount ($)

Manufacturing supplies

Variable

13530

Power and light

Variable

40360

Factory insurance

Fixed

23500

Production supervisor wages

Variable

118700

Production control wages

Variable

30860

Materials management wages

Variable

33940

Factory depreciation

Fixed

19230

Total

280120

Factory Overhead cost Budget

Particulars

Nature

Amount ($)

Manufacturing supplies

Variable

13530

Power and light

Variable

40360

Factory insurance

Fixed

23500

Production supervisor wages

Variable

118700

Production control wages

Variable

30860

Materials management wages

Variable

33940

Factory depreciation

Fixed

19230

Total

280120

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