Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted di

ID: 2598148 • Letter: P

Question

Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January February March The variable overhead rate is $0.60 per direct labor hour. Fixed overhead is budgeted at $2,600 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. 13,140 12,300 15,075 Patrick Inc. Overhead Budget Overhead: January February March Total Total direct labor hrs Variable overhead rate Total variable overhead Add: Fixed overhead Total overhead

Explanation / Answer

Patrick Inc.

Overhead Budget

For the coming first Quarter

S.No

Overheads

January

February

March

Total

(a)

Total direct labor Hrs

13140

12300

15075

40515

(b)

Variable overhead rate

0.6

(c)

Total variable overhead [(a)*(b)]

7884

7380

9045

24309

(d)

Add: Fixed overheads

2600

7800

(e)

Total Overheads [(c) + (d)]

10484

9980

11645

32109