Chapter 8, Problem 8.5E

1.

To determine

Concept Introduction:

A budget is a financial plan for a future period. The budget is prepared usually for a financial year. Budgets can be prepared for revenue and expenses. Budgets help the company to plan for future income and expenses and evaluate business performance.  

The manufacturing overhead budget is prepared to estimate the amount of overhead for the budgeted period. The overhead includes the variable overhead and fixed overhead.

To prepare: the manufacturing overhead budget.

2.

To determine

Concept Introduction:

A budget is a financial plan for a future period. The budget is prepared usually for a financial year. Budgets can be prepared for revenue and expenses. Budgets help the company to plan for future income and expenses and evaluate business performance.  

The manufacturing overhead budget is prepared to estimate the amount of overhead for the budgeted period. The overhead includes the variable overhead and fixed overhead.

To prepare: the predetermined overhead rate.