Refer to 12.36. Birmingham Steal Corporation’s variable factory overhead costs include utilities ($.10 per baseball uniform), supplies ($.05 per uniform), and other variable costs

($.12 per uniform). Fixed factory overhead costs include supervisory salaries ($20,000 per month), depreciation of plant and equipment ($5,500 per month), and other fixed costs ($12,000 per month). Birmingham Steal makes cash payments for factory overhead costs (except for depreciation) in the month these costs are incurred.

Required: Using the production information in 12-36, prepare a factory overhead budget for the first three months of next year. lpo8