Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,910 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Overhead:JanuaryFebruaryMarchTotalTotal direct labor hrsfill in the blank 1fill in the blank 2fill in the blank 3fill in the blank 4Variable overhead rate$fill in the blank 5$fill in the blank 6$fill in the blank 7$fill in the blank 8Total variable overhead$fill in the blank 9$fill in the blank 10$fill in the blank 11$fill in the blank 12Add: Fixed overheadfill in the blank 13fill in the blank 14fill in the blank 15fill in the blank 16Total overhead$fill in the blank 17$fill in the blank 18$fill in the blank 19$fill in the blank 20
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.
Preparing an
Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are:
| January | 13,140 |
| February | 12,300 |
| March | 15,075 |
The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,910 per month.
Required:
Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar.
Overhead:JanuaryFebruaryMarchTotalTotal direct labor hrsfill in the blank 1fill in the blank 2fill in the blank 3fill in the blank 4Variable overhead rate$fill in the blank 5$fill in the blank 6$fill in the blank 7$fill in the blank 8Total variable overhead$fill in the blank 9$fill in the blank 10$fill in the blank 11$fill in the blank 12Add: Fixed overheadfill in the blank 13fill in the blank 14fill in the blank 15fill in the blank 16Total overhead$fill in the blank 17$fill in the blank 18$fill in the blank 19$fill in the blank 20
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