Question

For Blossom Inc., variable manufacturing overhead costs are expected to be $21,050 in the first quarter of 2020, with $4,220 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,750 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.

Answer 1

Answer:

Explanation:

The preparation of the manufacturing overhead budget by quarters and in total for the year is shown below:

Particulars                    Quarter 1   Quarter 2  Quarter 3   Quarter 4   Total

Variable manufacturing

overhead costs              $21,050  $25,270   $29,490   $33,710    $109,520

Fixed overhead costs    $35,750  $35,750   $35,750   $35,750   $143,000

Total manufacturing       $56,800  $61,020  $65,240   $69,490   $252,520

costs

The variable manufacturing overhead costs is increased by $4,220 in every following quarter.