Answer:
Factory Overhead Cost Budget
For the month ending August 31, 2016
Variable factory overhead costs:
Manufacturing supplies $14,000
Power and light $48,000
Production supervisor wages $135,000
Production control wages $32,000
Materials management wages $<u>39,000</u>
Total variable factory overhead costs $268,000
Fixed Factory Overhead Costs
Factory insurance $30,000
Factory depreciation <u>$22,000</u>
Total Fixed Factory Overhead Costs <u>$52,000</u>
Total factory overhead costs <u>$320,000</u>
Thus, the total factory overhead cost for the month of August, 2016 is $320,000.
