Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $241,440 Manufacturing supplies 13,230 Power and light 39,470 Sales commissions 269,940 Factory insurance 22,980 Production supervisor wages 116,080 Production control wages 30,180 Executive officer salaries 246,080 Materials management wages 33,190 Factory depreciation 18,810 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 budgeted the following costs for anticipated production for August: Advertising expenses $241,440 Manufacturing supplies 13,230 Power and light 39,470 Sales commissions 269,940 Factory insurance 22,980 Production supervisor wages 116,080 Production control wages 30,180 Executive officer salaries 246,080 Materials management wages 33,190 Factory depreciation 18,810 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
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Factory Overhead Cost Budget
Sweet Tooth Company budgeted the following costs for anticipatedproduction for August:
| Advertising expenses | $259,400 |
| Manufacturing supplies | 14,220 |
| Power and light | 42,400 |
| Sales commissions | 290,020 |
| Factory insurance | 24,690 |
| Production supervisor wages | 124,710 |
| Production control wages | 32,420 |
| Executive officer salaries | 264,390 |
| Materials management wages | 35,670 |
| Factory depreciation | 20,210 |
Prepare a factory overhead cost budget, separating variable andfixed costs. Assume that factory insurance and depreciation are theonly fixed factory costs.
| SweetTooth Company | ||
| Factory Overhead Cost Budget | ||
| Forthe Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| Manufacturingsupplies | $ | |
| Power and light | ||
| Production supervisorwages | ||
| Production controlwages | ||
| Materials managementwages | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| Factory insurance | $ | |
| Factory depreciation | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
Factory Overhead Cost Budget
Sweet Tooth Company budgeted the following costs for anticipatedproduction for August:
| Advertising expenses | $259,400 |
| Manufacturing supplies | 14,220 |
| Power and light | 42,400 |
| Sales commissions | 290,020 |
| Factory insurance | 24,690 |
| Production supervisor wages | 124,710 |
| Production control wages | 32,420 |
| Executive officer salaries | 264,390 |
| Materials management wages | 35,670 |
| Factory depreciation | 20,210 |
Prepare a factory overhead cost budget, separating variable andfixed costs. Assume that factory insurance and depreciation are theonly fixed factory costs.
| SweetTooth Company | ||
| Factory Overhead Cost Budget | ||
| Forthe Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| Manufacturingsupplies | $ | |
| Power and light | ||
| Production supervisorwages | ||
| Production controlwages | ||
| Materials managementwages | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| Factory insurance | $ | |
| Factory depreciation | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
2.
Sales and Production Budgets
Sonic Inc. manufactures two models of speakers, Rumble andThunder. Based on the following production and sales data for June,prepare (a) a sales budget and (b) a production budget.
| Rumble | Thunder | ||
| Estimated inventory (units), June 1 | 278 | 77 | |
| Desired inventory (units), June 30 | 319 | 67 | |
| Expected sales volume (units): | |||
| East Region | 4,100 | 4,600 | |
| West Region | 5,000 | 4,350 | |
| Unit sales price | $115 | $185 |
a. Prepare a sales budget.
| SonicInc. | |||
| SalesBudget | |||
| Forthe Month Ending June 30 | |||
| Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
| Model Rumble: | |||
| East Region | $ | $ | |
| West Region | |||
| Total | $ | ||
| Model Thunder: | |||
| East Region | $ | $ | |
| West Region | |||
| Total | $ | ||
| Total revenue from sales | $ | ||