Factory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $232,000 Manufacturing supplies 14,000 Power and light 48,000 Sales commissions 298,000 Factory insurance 30,000 Production supervisor wages 135,000 Production control wages 32,000 Executive officer salaries 310,000 Materials management wages 39,000 Factory depreciation 22,000 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: $ Total variable factory overhead costs $ Fixed factory overhead costs: $ Total fixed factory overhead costs Total factory overhead costs

Total factory overhead costs $ 281,000

Variable factory overhead costs: $ 229,000

Fixed factory overhead costs: $ 52,000

Explanation:

Sweet Tooth Candy Company

Factory Overhead Cost Budget

For the Month Ending August 31

Variable factory overhead costs: $ 229,000

Manufacturing supplies 14,000

Power and light 48,000

Production supervisor wages 135,000

Production control wages 32,000

Total variable factory overhead costs $ 229,000

Fixed factory overhead costs: $ 52,000

Factory insurance 30,000

Factory depreciation 22,000

Total fixed factory overhead costs $ 52,000

Total factory overhead costs $ 281,000

1)The following are not included in the factory Overheads as they are related to the Administration and Sales Department.

Advertising expenses $232,000

Sales commissions 298,000

Executive officer salaries 310,000

2) The following is Direct labor and is not included in the factory overhead costs.

Materials management wages 39,000

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