Answer:
Manufacturing Overhead Budgets:
Quarter 1:
Variable Overhead - $20,730
Fixed Overhead - $35,180
Total for quarter 1 = $55,910
Quarter 2:
Variable Overhead - $25,100
Fixed Overhead - $35,180
Total for quarter 2 = $60,280
Quarter 3:
Variable Overhead - $29,470
Fixed Overhead - $35,180
Total for quarter 3 = $64,650
Quarter 4:
Variable Overhead - $33,840
Fixed Overhead - $35,180
Total for quarter 4 = $69,020
Total for the year:
Variable Overhead $(20,730 + 25,100 + 29,470 + 33,840) = $109,140
Fixed Overhead $(35,180 x 4) = $140,720
Total = $249,860
Explanation:
a) Fixed overhead is estimated to be $35,180 each quarter. So the total for the year will be $35,180 x 4 quarters = $140,720.
b) The variable overhead in the first quarter was estimated to be $20,730. In the second quarter, it will increase by $4,370, to give $25,100 (20,730 + 4,370).
In the third quarter, it will increase by $4,370 on the second quarter's to give $29,470 (25,100 + 4,370).
In the fourth quarter, it will increase by $4,370 on the figure of the third quarter to give $33,840 (29,470 + 4,370).
