BE9-6 - The fixed overhead costs would remain fixed in each...

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BE9-6 For Savage Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year. The manufacturing overhead budget states the expected overhead costs for the year Broken down by the quarter. We are given the variable overhead cost and the change in it.
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Unformatted text preview: The fixed overhead costs would remain fixed in each quarter. Total overhead cost would variable overhead cost + fixed overhead cost Savage Inc Manufacturing Overhead Budget for 2005 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total Variable Manufacturing Overhead 20,000 22,000 24,000 26,000 92,00 0 Fixed Manufacturing Overhead 35,000 35,000 35,000 35,000 35,00 0 Total Manufacturing Overhead 55,000 57,000 59,000 61,000 232,00 0...
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This note was uploaded on 09/20/2008 for the course ACC 349 taught by Professor Christie during the Spring '08 term at University of Phoenix.

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