Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2020, with $5,000 increments in each of the remaining three quarters.
Fixed overhead costs are estimated to be $40,000 in each quarter.
Manufacturing overhead budget:
Variable overhead
Fixed overhead
Total overhead
Q1:
Variable overhead= 20,000
Fixed overhead= 40,000
Total overhead= 60,000
Q2:
Variable overhead= 25,000
Fixed overhead= 40,000
Total overhead= 65,000
Q3:
Variable overhead= 30,000
Fixed overhead= 40,000
Total overhead=70,000
Q4:
Variable overhead= 35,000
Fixed overhead= 40,000
Total overhead= 75,000
