Variable Overhead	Week 1	Week 2	Week 3	Week 4	Total	Budget
Utilities	$961	$1,138	$854	$776	$3,730	$4,000
Supplies	$3,189	$3,413	$2,477	$2,643	$11,721	$12,000
Support Wages	$4,464	$4,010	$3,136	$2,295	$13,905	$12,180
Other Variable Overhead	$2,078	$1,985	$1,461	$1,209	$6,734	$4,004
Total Variable Overhead	$10,693	$10,546	$7,928	$6,922	$36,089	$32,604

Variable Overhead Budgets and Variances jon explains that he worked with the prior service manager to develop the branch's master budget for variable overhead by first taking the sales volume estimate from the sales manager and considering the direct materials and direct labor that were to be incurred. They estimated that the branch would incur $32,600 of variable overhead costs, such as utilities like water and electricity, consumables like lubricants, disposal fees, janitorial labor, and so on, to fulfill that level of volume. To allocate variable overhead into inventory, they assumed the standard that each of the 1,000 cars for the month would require four tire kits, resulting in a budgeted allocation base of 4,000 tire kits and a variable overhead allocation rate of $13 per tire kit. Though Julian admits he focused on costs and let the prior service manager deal with the allocation and inventory part of the budget. Having examined the numbers, the operations manager seems somewhat displeased with the performance of the support team. Perhaps because of lower sales volume and lesser efficiency with tire kits, the support team was unable to judiciously use variable overhead resources and maintain scale

how to find a

V-OH Spending Variance

V-OH Efficiency Variance