Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $4.75 per hammock Variable indirect labor $11.25 per hammock Other variable overhead $3.25 per hammock Salaries $50,000 per quarter Insurance $6,000 per quarter Depreciation $25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter. 4th QuarterVariable overhead24Fixed overhead24>>

Manufacturing Overhead Budget represents all manufacturing overheads to be incurred during the budget period. This budget includes the cost of indirect materials, indirect labor and indirect expenses. It may be classified into fixed, variable or semi variable cost. Bonita's Manufacturing Overhead Budget for the fourth quarter Amount ( $ ) Amount ($ ) VARIABLE OVERHEADS: Variable indirect materials (4.75 x 28000) 133,000 Variable indirect labor (11.25 x 28000) 315,000 Other variable overheads (3.25 x 28000) 91,000 TOTAL VARIABLE OVERHEAD COSTS 539,000 FIXED OVERHEADS: Salaries 50,000 Insurance 6000 Depreciation 25,000 TOTAL FIXED OVERHEADS 81,000 TOTAL MANUFACTURING OVERHEAD COST $ 620,000 Pre overhead rate per unit (620,000 /28000) $ 22.14 Therefore total budgeted manufacturing costs for the estimated production units of 28,000 is $620,000

Answered: Bonita Sleep Systems manufactures nylon…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include:


Variable indirect materials	$	4.75	per hammock
Variable indirect labor	$	11.25	per hammock
Other variable overhead	$	3.25	per hammock
Salaries	$	50,000	per quarter
Insurance	$	6,000	per quarter
Depreciation	$	25,000	per quarter

Prepare Bonita's manufacturing overhead budget for the fourth quarter.

4th Quarter
Variable overhead
24
Fixed overhead
24
>
>

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