Using the Following Information, Prepare a Factory Overhead Cost Budget

Essay

Using the following information, prepare a factory overhead cost budget for Andover Company where the total factory overhead cost is $75,500 at normal capacity (100%). Include capacity at 75%, 90%, 100%, and 110%. Total variable cost is $6.25 per unit and total fixed costs are $38,000. The information is for the month ending August 31. (Hint: Determine units produced at normal capacity.)