Chapter 9, Problem 9.44BE

Manufacturing overhead budget (Learning Objective 2)

The Grant Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 49,000 units. Information about the various manufacturing overhead costs follows:

	Variable rate per unit	Total fixed costs
Indirect materials	$1.30
Supplies	$1.00
Indirect labor	$0.80	$66,000
Plant utilities	$0.30	$34,000
Repairs and maintenance	$0.30	$13,000
Depreciation on plant and equipment		$41,000
Insurance on plant and equipment		$29,000
Plant supervision		$65,000

Requirement

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