Precision Polishing specializes in cutting and preparing granite panels for customized kitchen cabinetry. This requires highly specialized laser cutting and polishing equipment. Consequently, Precision Polishing allocates variable factory overhead to inventory on the basis of machine hours at a rate of $20 per hour. Total overhead budgeted for the year is $838 500. Of this, $500 000 is considered to be fixed overhead. Machine hours for each quarter are anticipated to be 3800, 2825, 5600 and 4700 respectively.

Required

Prepare a factory overhead budget for the year.