BE9.6 (LO 3), AP For Roche Inc., 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. Prepare the manufacturing overhead budget by quarters and in total for the year. Prepare a manufacturing overhead budget.

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