8. Sweet Tooth Company budgeted the following costs for anticipated production for August: Advertising expenses $273,290 Manufacturing supplies 14,980 Power and light 44,670 Sales commissions 302,050 Factory insurance 26,010 Production supervisor wages 131,390 Production control wages 34,160 Executive officer salaries 278,550 Materials management wages 37,580 Factory depreciation 21,290 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
8. Sweet Tooth Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $273,290 |
| Manufacturing supplies | 14,980 |
| Power and light | 44,670 |
| Sales commissions | 302,050 |
| Factory insurance | 26,010 |
| Production supervisor wages | 131,390 |
| Production control wages | 34,160 |
| Executive officer salaries | 278,550 |
| Materials management wages | 37,580 |
| Factory |
21,290 |
Prepare a factory
![**Factory Overhead Cost Budget Analysis**
This section provides guidance on preparing a factory overhead cost budget by distinguishing between variable and fixed costs, with the assumption that factory insurance and depreciation are the only fixed factory costs.
---
**Sweet Tooth Company**
**Factory Overhead Cost Budget**
**For the Month Ending August 31**
---
**Variable Factory Overhead Costs:**
- [Dropdown Option for Cost Type] .......................... $ [Amount Input Field]
- [Dropdown Option for Cost Type] .......................... $ [Amount Input Field]
- [Dropdown Option for Cost Type] .......................... $ [Amount Input Field]
- [Dropdown Option for Cost Type] .......................... $ [Amount Input Field]
Total Variable Factory Overhead Costs: ........... $ [Total Input Field]
---
**Fixed Factory Overhead Costs:**
- [Factory Insurance] ........................................... $ [Amount Input Field]
- [Depreciation] ................................................... $ [Amount Input Field]
Total Fixed Factory Overhead Costs: ................. $ [Total Input Field]
---
**Total Factory Overhead Costs:**
Total Overhead Costs: ........................................ $ [Overall Total Input Field]
---
This template structures the factory overhead costs for educational purposes, offering dropdowns to select cost types and fields to input corresponding amounts for accurate budgeting and analysis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55f0052a-9d0d-41a8-9339-203ce40e3605%2Febb88e67-4130-4142-ab71-124c0f6e419d%2Fknzobx_processed.png&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
