Chapter 9, Problem 9.24AE

Manufacturing overhead budget (Learning Objective 2)

The Stenback Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 48,000 units. Information about the various manufacturing overhead costs follows:

	Variable rate per unit	Total fixed costs
Indirect materials	$0.90
Supplies	$0.70
Indirect labor	$0.40	$64,000
Plant utilities	$0.10	$34,000
Repairs and maintenance	$0.50	$10,000
Depreciation on plant and equipment		$45,000
Insurance on plant and equipment		$20,000
Plant supervision		$68,000

Requirement

Prepare the manufacturing overhead budget for the Stenback Company for the upcoming year.