Question

For Roche Inc., variable manufacturing overhead costs are expected to be $20,950 in the first quarter of 2020, with $4,230 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,800 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.

Answer 1

The manufacturing overhead budget by quarters and in total for the year is as follows:

Explanation:

Particulars             Q1          Q2        Q3        Q4        Total

Variable costs     20950    25180    29410   33640   109180

Fixed costs          35800     35800    35800  35800   143200

Total                    56750      60980    65210    69440   252380

manufacturing costs

Note ; the total manufacturing costs is the sum total of the variable costs and the fixed costs that haveen assigned and allocated to each of the quarter respectively and in totality.

Note 2. in the variable cost , each quarter cost has been increased with an amount of $4230 as mentioned in the question and the fixed cost remains the same in each quarter as given in the question.