Sarasota Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Quarterly units production: Q1-9,800, Q2-11,100, Q3-13,000, Q4-15,400. Direct labor: Labor required is 1 hour per unit. Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.10; and maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $40,500; depreciation $16,700; and maintenance $11,000. Prepare the manufacturing overhead budget for the year, showing quarterly data. (List variable costs before fixed costs.) First Quarter SARASOTA COMPANY Manufacturing Overhead Budget Second Quarter 1 Q₁

Sarasota Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Quarterly units production: Q1-9,800, Q2-11,100, Q3-13,000, Q4-15,400. Direct labor: Labor required is 1 hour per unit. Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.10; and maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $40,500; depreciation $16,700; and maintenance $11,000. Prepare the manufacturing overhead budget for the year, showing quarterly data. (List variable costs before fixed costs.) First Quarter SARASOTA COMPANY Manufacturing Overhead Budget Second Quarter 1 Q₁

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

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.

Question

Sarasota Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following.
Quarterly units production: Q1-9,800, Q2-11,100, Q3-13,000, Q4-15,400.
unit.
Direct labor: Labor required is 1 hour per
Variable overhead costs per direct labor hour: Indirect materials $0.80; indirect labor $1.10; and maintenance $0.50.
Fixed overhead costs per quarter: Supervisory salaries $40,500; depreciation $16,700; and maintenance $11,000.
Prepare the manufacturing overhead budget for the year, showing quarterly data. (List variable costs before fixed costs.)
First
Quarter
SARASOTA COMPANY
Manufacturing Overhead Budget
Second
Quarter
1
Qı

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