carole dahl is chief financial officer of the phoenix division of dahl corporation a 544707
Overhead Budget
Carole Dahl is chief financial officer of the Phoenix Division of Dahl Corporation, a multinational company with three operating divisions. As part of the budgeting process, Dahl’s staff is developing the overhead budget for next year. The division estimates that it will manufacture 50,000 units during the year. The budgeted cost information is as follows:
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|
Variable Rate per Unit |
Total Fixed Costs |
|
|
Indirect materials |
$1.00 |
|
|
Indirect labor |
4.00 |
|
|
Supplies |
0.40 |
|
|
Repairs and maintenance |
3.00 |
$ 40,000 |
|
Electricity |
0.10 |
20,000 |
|
Factory supervision |
180,000 |
|
|
Insurance |
25,000 |
|
|
Property taxes |
35,000 |
|
|
Depreciation–machinery |
82,000 |
|
|
Depreciation–building |
72,000 |
Using these data, prepare the division’s overhead budget for next year.
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