Answer:
Total factory overhead costs $ 281,000
Variable factory overhead costs: $ 229,000
Fixed factory overhead costs: $ 52,000
Explanation:
<u>Sweet Tooth Candy Company </u>
<u>Factory Overhead Cost Budget </u>
<u>For the Month Ending August 31 </u>
Variable factory overhead costs: $ 229,000
Manufacturing supplies 14,000
Power and light 48,000
Production supervisor wages 135,000
Production control wages 32,000
<u>Total variable factory overhead costs $ 229,000</u>
Fixed factory overhead costs: $ 52,000
Factory insurance 30,000
Factory depreciation 22,000
<u>Total fixed factory overhead costs $ 52,000</u>
<u>Total factory overhead costs $ 281,000</u>
<em>1)The following are not included in the factory Overheads as they are related to the Administration and Sales Department.</em>
Advertising expenses $232,000
Sales commissions 298,000
Executive officer salaries 310,000
<em>2) The following is Direct labor and is not included in the factory overhead costs.</em>
Materials management wages 39,000
