Factory Overhead Cost Budget Nutty Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $274,210 Production supervisor wages $131,830 Manufacturing supplies 15,030 Production control wages 34,280 Power and light 44,820 Executive officer salaries 279,480 Sales commissions 303,060 Materials management wages 37,700 Factory insurance 26,100 Factory depreciation 21,360 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only factory fixed costs. Enter all amounts as positive numbers. NUTTY CANDY COMPANY Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: $fill in th
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Factory
Nutty Candy Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $274,210 | Production supervisor wages | $131,830 |
| Manufacturing supplies | 15,030 | Production control wages | 34,280 |
| Power and light | 44,820 | Executive officer salaries | 279,480 |
| Sales commissions | 303,060 | Materials management wages | 37,700 |
| Factory insurance | 26,100 | Factory |
21,360 |
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only
| NUTTY CANDY COMPANY | ||
| Factory Overhead Cost Budget | ||
| For the Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| $fill in the blank 2 | ||
| fill in the blank 4 | ||
| fill in the blank 6 | ||
| fill in the blank 8 | ||
| fill in the blank 10 | ||
| Total variable factory overhead costs | $fill in the blank 11 | |
| Fixed factory overhead costs: | ||
| $fill in the blank 13 | ||
| fill in the blank 15 | ||
| Total fixed factory overhead costs | fill in the blank 16 | |
| Total factory overhead costs | $fill in the blank 17 |
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