Question

Preparing an Overhead BudgetPatrick Inc. makes industrial solvents. Budgeted direct labor hours for the first three months of the coming year are:January 13,140February 12,300March 15,075The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,670 per month.Required:Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar.Patrick Inc.Overhead BudgetFor the Coming First QuarterOverhead: January February March TotalTotal direct labor hrs Variable overhead rate $ $ $ $Total variable overhead $ $ $ $Add: Fixed overhead Total overhead $ $ $ $

Answer 1

Patrick Inc

Overhead Budget

January February March Total

Direct labor Hours 13,140 12,300 15,075 40,515

Variable Overhead rate 0.70 per Direct Labor Hours

Total variable Overhead $ 9,198 $ 8,610 $ 10,553 $ 28,361

Fixed overhead $ 2,670 $ 2,670 $ 2,670 $ 8,010

Total Overhead $ 11,868 $ 11,280 $ 13,223 $ 36,371

Step-by-step explanation: