E 10. Carole Dahl is chief financial officer of the Phoenix Division of Dahl Corporation, a multinational company with three operating divisions. As part of the budgeting process, Dahl’s staff is developing the overhead budget for next year.

The division estimates that it will manufacture 50,000 units during the year. The budgeted cost information is as follows:

Variable Rate per Unit Total Fixed Costs Indirect materials $1.00 Indirect labor 4.00 Supplies 0.40 Repairs and maintenance 3.00 $ 40,000 Electricity 0.10 20,000 Factory supervision 180,000 Insurance 25,000 Property taxes 35,000 Depreciation–machinery 82,000 Depreciation–building 72,000 Using these data, prepare the division’s overhead budget for next year.

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