Manufacturing Overhead

Variable overhead costs are based on labor hours, listed below:

Indirect materials $50$ e per labor hour

Indirect labor $75c^{}$ per labor hour

Utilities $65$ per labor hour

Maintenance $35$ c per labor hour

Foxed overhead costs are budgeted for the month, listed below:

Rent $$3,000$ per month

Salaries $$11,000$ per month

Depreciation $$4,800$ per month

Property taxes $$675$ per month

Insurance $$500$ per month

Selling and Administrative

Variable selling and administrative cost are budgeted per sales unit:

Shipping expense $$\mathrm{.}75$ per sales unit

Packaging expense $$\mathrm{.}50$ per sales unit

Fixed selling and administrative costs are budgeted for the month, listed below:

Advertising $$2,000$ a month

Insurance $$700$ a month

Office Salaries $$4,000$ a month

Depreciation $$800$ a month

Other Information

The Cash balance at the end of $2023,$ is $$80,750,$ and Bloomfield would like

to maintain a cash balance of at least $$200,000$ at the end of each quarter.

All Direct Labor, Manufacturing Overhead and Selling & Administrative costs

are paid in the quarter incurred.

Bloomfield has an open line of credit with the bank, and can borrow in any

quarter they don't meet the minimum cash balance of $$55,000.$

Borrowed funds accrue $3\%$ interest for the quarter and are paid in the first

quarter cash is available along with interest.

Bloomfield collects interest of $$3,000$ from a note receivable each quarter.

Bloomfield plans to purchase a $$50,000$ equipment in cash in Quarter $3.$

Bloomfield pays an estimated income tax at $$5,000$ each quarter.

COMPUTE THE OVERHEAD BUDGET & SELLING AND ADMINISTRATIVE BUDGET