Prepare a manufacturing overhead budget using the above overhead information.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Direct labor hours are estimated as 1,500 in Quarter 1; 1,600 in Quarter 2; 1,400 in Quarter 3; and 1,800 in Quarter 4.
| Indirect material per hour | $1.00 | Supervisory salaries | $16,000 | |
| Indirect labor per hour | 1.20 | Maintenance Salaries | 6,000 | |
| Maintenance per hour | 0.25 | Property taxes and insurance | 7,000 | |
| Utilities per hour | 0.50 | 2,500 |
Prepare a manufacturing overhead budget using the above overhead information.
| Manufacturing Overhead Budget | |||||
| For the Year Ending Dec. 31, 2020 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
| Variable Costs | |||||
| $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | |
| fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | |
| fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | |
| fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | |
| Total Variable |
$fill in the blank 25 | $fill in the blank 26 | $fill in the blank 27 | $fill in the blank 28 | $fill in the blank 29 |
| Fixed Costs | |||||
| $fill in the blank 31 | $fill in the blank 32 | $fill in the blank 33 | $fill in the blank 34 | $fill in the blank 35 | |
| fill in the blank 37 | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | |
| fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | fill in the blank 47 | |
| fill in the blank 49 | fill in the blank 50 | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | |
| Total Fixed Manufacturing Costs | $fill in the blank 54 | $fill in the blank 55 | $fill in the blank 56 | $fill in the blank 57 | $fill in the blank 58 |
| Total Manufacturing Overhead | $fill in the blank 59 | $fill in the blank 60 | $fill in the blank 61 | $fill in the blank 62 | $fill in the blank 63 |
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