Use the following terms in preparing the budget: Insurance Maintenance Utilities Depreciation Expense Sales Commissions Depreciation Indirect Material Maintenance Salaries Indirect Labor Supervisory Salaries Sales Salaries Insurance Expense Spree Party Lights overhead expenses are: Indirect material, pounds per unit 0.25 Indirect material, cost per pound $ 2 Indirect labor hours 1 Indirect labor rate per hour $16.50 Variable maintenance per unit $0.75 Variable utilities per unit $0.20 Supervisor salaries $10,000 Maintenance salaries $9,000 Insurance $3,000 Depreciation $1,500 PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the terms and the information above, prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,500, 3,000, and 2,700, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending March, 2019 Jan. Feb. Mar. Units to Produce 2,500 3,000 2,700 Variable Costs: X X X ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Variable Manufacturing Costs ? ? ? Fixed Costs: X X X ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Fixed Manufacturing Costs ? ? ? Total Manufacturing Overhead ? ? ?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9Q: A company has prepared the operating budget and the cash budget. It is now preparing the budgeted...

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4. Use the following terms in preparing the budget:

Insurance	Maintenance	Utilities	Depreciation Expense
Sales Commissions	Depreciation	Indirect Material	Maintenance Salaries
Indirect Labor	Supervisory Salaries	Sales Salaries	Insurance Expense

Spree Party Lights overhead expenses are:

Indirect material, pounds per unit 0.25

Indirect material, cost per pound $ 2

Indirect labor hours 1

Indirect labor rate per hour $16.50

Variable maintenance per unit $0.75

Variable utilities per unit $0.20

Supervisor salaries $10,000

Maintenance salaries $9,000

Insurance $3,000

Depreciation $1,500

PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).

Using the terms and the information above, prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,500, 3,000, and 2,700, respectively.

Spree Party Lights

Manufacturing Overhead Budget

For the Quarter Ending March, 2019

Jan.

Feb.

Mar.

Units to Produce

2,500

3,000

2,700

Variable Costs:

Total Variable Manufacturing Costs

Fixed Costs:

Total Fixed Manufacturing Costs

Total Manufacturing Overhead

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