Manufacturing overhead budget and rate Baba Moose has been toying with the idea of manufacturing two novelty items that he invented. He plans to use his garage for production space and to hire part-time help. In order to budget his overhead costs for the coming year he prepares the following estimates:

Transcribed Image Text:

Exploding tennis balls Dissolving ballpoint pens Overhead: Fixed (per year): Depreciation of garage Utilities Property tax Variable (per direct labor hour): Indirect materials Utilities Budgeted Sales per Unit Labor Requirement 12,000 41,000 per Unit .3 hours .2 hours $400.00 120.00 70.00 1113 .10 .15