The production budget for Kaminski Products shows the company expects to produce 500 units in the first quarter. Assume variable overhead cost per unit is \($5\) for indirect materials, \($8\) for indirect labor, and \($3\) for other items. Fixed overhead cost per quarter is \($30,000\) for salaries, \($20,000\) for rent, and \($8,000\) for depreciation. Prepare a manufacturing overhead budget for the first quarter using Exhibit 9.5 as a guide.

Exhibit 9.5 

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Manufacturing Overhead Budget for Jerry's Ice Cream Jerry's Ice Cream Manufacturing Overhead Budget Year Ending December 31 Units to be produced (Exhibit 9.2) Variable overhead costs: Indirect materials ($0.15 per unit) Indirect labor ($0.10 per unit) Other ($0.25 per unit) Total variable overhead costs Fixed overhead costs: Quarter 1 2 3 4 40,800 49,200 59,200 51,200 Year 200,400 $ 6,120 $ 7,380 $ 8,880 $ 7,680 $ 30,060 4,080 4,920 5,920 5,120 20,040 10,200 12,300 14,800 12,800 50,100 20,400 24,600 29,600 25,600 100,200 Salaries 15,000 15,000 15,000 15,000 60,000 Rent 10,000 10,000 10,000 10,000 40,000 Depreciation 10,070 10,070 10,070 10,070 40,280 Total fixed overhead costs 35,070 35,070 35,070 35,070 140,280 Total overhead costs 55,470 59,670 64,670 60,670 240,480 Deduct depreciation* Cash payments for overhead (10,070) (10,070) (10,070) $45,400 $49,600 $54,600 (10,070) (40,280) $50,600 $200,200 Manufacturing overhead per unit** $1.20 *Deduct depreciation to get the actual cash payment for overhead. This information is needed for the cash budget presented in Exhibit 9.9. **$1.20 = $240,480 total overhead cost + 200,400 units to be produced for the year.