Brief Exercise 21-6

For Roche Inc., variable manufacturing overhead costs are expected to be $20,570in the first quarter of 2017, with $4,420increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,960in each quarter.

Prepare the manufacturing overhead budget by quarters and in total for the year.

ROCHE INC.

Manufacturing Overhead Budget

For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017

Quarter

1

2

3

4

Year

Variable costs

$

$

$

$

$

Fixed costs

Total manufacturing overhead

$

$

$

$

$