Clear Channels is really making progress! Now it wants to develop its overhead budget. Variable overhead per unit is $2.50. Fixed overhead is $150,000 per quarter. With this information plus that provided in Exercise 10, develop an overhead budget for Clear Channels.

Data from Exercise 10

Clear Channels makes portable radios that can be used during storms. The radios do not require an outside source of power because the battery is charged with a crank. They are a highly prized item in people’s home emergency kits. Sales are strong and growing each quarter. Opening inventory is 250,000 units. Quarter 1 sales are projected to be 1,000,000 units, Quarter 2 sales 1,250,000 units, Quarter 3 sales 1,500,000 units, Quarter 4 sales 1,750,000 units, and sales in the first quarter of next year are expected to top 2,000,000 units. The company’s policy is to keep 25% of the next period’s projected sales on hand at the end of each quarter. Using this information, please develop the production budget for Clear Channels.