Question

For Saxton, Inc., variable manufacturing overhead costs are expected to be $14,500 in the first quarter of 2017, with $3,600 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $19,800 in each quarter. What is the total amount of overhead to be budgeted for manufacturing overhead in quarter 2

Answer 1

Total overhead= $41,500

Step-by-step explanation:

Giving the following information:

Variable overhead first quarter= $14,500

Variable overhead increases= $3,600

Fixed overhead= $19,800

To calculate the total overhead for a specific quarter, we need to use the following formula:

Total overhead= fixed overhead + variable overhead + variable overhead increase*x

x= number of quarter

Now, for the second quarter:

Total overhead= 19,800 + 14,500 + 3,600*2

Total overhead= $41,500