Factory Overhead Cost Budget Venus Candy Company budgeted th

Factory Overhead Cost Budget Venus Candy Company budgeted the following costs for anticipated production for July 2016: Advertising expenses $278,320 Manufacturing supplies 15,250 Power and light 45,500 Sales commissions 300,700 Factory insurance 26,490 Production supervisor wages 133,810 Production control wages 34,790 Executive officer salaries 283,680 Materials management wages 38,270 Factory depreciation 21,680 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Venus Candy Company Factory Overhead Cost Budget For the Month Ending July 31, 2016 Variable factory overhead costs: $ Total variable factory overhead costs $ Fixed factory overhead costs: $ Total fixed factory overhead costs Total factory overhead costs $

Solution

Particulars

Amount ($)

Amount ($)

Variable factory overhead costs:

Advertising expenses

278320

manufacturing supplies

15250

Power and light

45500

Sales commission

300700

Production supervisor wages

133810

Production control wages

34790

Executive officer salary

283680

Material management wages

38270

(A): Total Variable factory overhead costs:

1130320

Fixed factory overhead costs:

Factory insurance

26490

Factory depreciation

21680

(B): Total Fixed factory overhead costs:

48170

Total factory overhead costs (A +B)

1178490