Question

Winslow Company expects sales of its financial calculators to be $192,000 in the first quarter and $248,000 in the second quarter. Its variable overhead is approximately 15 percent of sales, and fixed overhead costs are $49,000 per quarter.

Required:
Compute Winslow's manufacturing overhead budget for the first two quarters.

Answer 1

Budgeted manufacturing overhead for 1st Quarter = [$192,000*15%] + $49,000

= $28,800 + $49,000

= $77,800

Budgeted manufacturing overhead for 2nd Quarter = [$248,000*15%] + $49,000

= $37,200 + $49,000

= $86,200