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Manufacturing Overhead Budget Example

Explore a manufacturing overhead budget example.

Manufacturing Overhead Budget

Budgeted DLH: April 1,3k, May 2.3k, June 1.45k, Q 5.050. Variable mfg. OH rate: April $20, May$20, June$20, Q$20. Variable mfg. OH costs: April $26k, May $46k, June $29k, Q $101k. Fixed mfg. OH costs: April 50k, May 50k, June 50k, Q150k. Total mfg. OH costs: April 76k, May 96k, June 79k, Q 251k. Less: non-cash costs: April 20k, May 20k, June 20k, Q 60k. Cash disbursements for manufacturing OH: April $56k, May $76k, June $59k, Q$ 191k

\[\frac{Total \hspace{1mm} MOH \hspace{1mm} for \hspace{1mm} quarter}{Total \hspace{1mm} labour \hspace{1mm} hours \hspace{1mm} required}\]

Example

\(\frac{$251,000}{5,050}\) = $49.70 per hour*

* rounded

Ending Finished Goods Inventory Budget

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