Ceiling Fans by Ike's overhead budget for 2009 was as follows:
| Factory supervision |
$300,000 |
| Utilities costs |
150,000 |
| Insurance |
28,000 |
| Property taxes |
22,000 |
| Depreciation |
100,000 |
| Total |
$600,000 |
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600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours. The 2010 expected production is 1,200,000 units.If the expected 2010 expense for factory supervision and for utilities costs is $500,000 and $250,000, respectively, then the total for the 2010 overhead budget.
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b. |
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d. |
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