FireGlobe budgets indirect materials (e.g., welding supplies and packaging materials) at $40 per globe. Utilities cost per globe is $50. FireGlobe treats indirect labor as a mixed cost. The variable component is $100 per globe. The following fixed costs per month are budgeted for indirect labor, $5,000, depreciation, $15,000, and other, $6,000. Prepare a Manufacturing Overhead budget.

Variable selling and administrative expenses consist of outward freight ($250 per globe) and sales commission (10 percent of the selling price per globe). Fixed selling and administrative expenses include webpage fees ($1,500 per month), administration ($40,000 per month) and marketing ($35,000 per month). Prepare an Operating Expenses budget.