Atlanta Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following.

Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000.

Direct labor: time is 1.5 hours per unit.

Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.50.

Fixed overhead costs per quarter: supervisory salaries $41,250; depreciation $15,000; and maintenance $12,000.

Instructions

Prepare the manufacturing overhead budget for the year, showing quarterly data.

Prepare a selling and administrative expense budget for 2 quarters.