Selva Inc. makes keyboards for tablets. Budgeted direct labour hours for the first three months of the coming year are:
January ................ 13,140
February ...............12,300
March....................15,075
The variable overhead rate is $0.70 per direct labour hour; fixed overhead is budgeted at $2,750 per month.
Required:
Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter.