Include the following requirement on the sheet, clearly labeled

Prepare a silk-screen overhead budget for each quarter and for the year in total. List the overhead items in the following order: Variable Overhead Costs, including ink, maintenance, utilities, graphics design, and subtotal of variable costs: Fixed Overhead Costs, including rent, maintenance, utilities, graphics design, property taxes and insurance, depreciation, and subtotal of fixed costs and finally, Total Overhead Costs(check figure Total manufacturing overhead is $176,064)

After graduating from Southwestern University in College Town, USA with a degree in business, Ben Kraws realized that he wanted to remain in College Town. After a number of unsuccessful attempts at getting a job in his discipline, Ben decided to go into business for himself. In thinking about his business venture, Ben determined that he had four criteria for the new business . . First, he wanted to do something that he would enjoy. Second, he wanted a business that would give back to the community Third, he wanted a business that would grow and be more successful every yea Fourth, realizing that he was going to have to work very hard, Ben wanted a business that would generate a minimum operating income of $225,000 annually . While reflecting on the criteria he had outlined, Ben, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in College Town to have custom sweatshirts made using a silk- screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit "Shirts and More." Ben had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning such a shop. He realized that a sweatshirt shop in College Town had the potential to meet all four criteria he had set. Ben set up an appointment with Iliana Levario, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Iliana liked Ben and was intrigued by his entrepreneurial spirit, she answered many of Ben's questions In addition, Iliana provided information concerning the type of equipment Ben would need for his business and the average useful life. Iliana knows a competitor who is retiring and would like to sell his equipment. Ben can purchase the equipment at the beginning of 2023 and the owner is willing to give him terms of 50% due upon purchase and 25% due the quarter following the purchase, and 25% due the second quarter following the purchase Ben will purchase the following equipment January 1, 2023 Equipment Purchase Hand operated press that applies ink to shirt Screens, other smaller items. Light exposure table Dryer conveyer belt that makes ink dry on the shirts Computer graphics software and color printer Display furniture Used Cash register S $ $ S $ $ $ Cost 8,500 2,400 1.400 2,600 3.760 2,400 1.100 Useful life - Years 5 2 10 10 4 10 5 Ben will use the straight-line method (assuming no residual value) to record the depreciation of the equipment Ben has decided to use the sweatshirt supplier recommended by Iliana He learned the purchase cost per sweatshirt to be silk-screened (direct materials) would be $16.50 Riana encouraged Ben to maintain an ending inventory of shirts equal to 10% of the next quarter's sales lliana has also encouraged Ben to ask the sweatshirt supplier for terms of 50% of a quarter's purchases to be paid in the quarter of purchase with the remaining 50% of the quarter's purchases to be paid in the quarter following the purchase. Ben also learned from talking with Iliana that the ink (indirect materials) used in the silk-screen process costs approximately $1.75 per shirt. Knowing that the silk-screen process is somewhat labor intensive, Ben plans to hire college students to help with the silk-screen process with the wage rate of $14.00 per hour. Each shirt needs approximately 0.2 hours to complete the silk-screen process. In addition, Ben will need one person to take orders, bill customers, and operate the cash register. Gigi Gaspar, who is currently Director of Student Development at Southwestern, has approached Ben about a job in sales. Gigi knows the officers of all o the student organizations on College. In addition, she is very active in the community. Ben thinks Gigi can bring in a lot of business. Additionally, she also has the clerical skills needed for the position. Because of her contacts, Ben is willing to pay Gigi $4.000 per month plus a commission of 2.0% of sales revenues. Ben realizes that he will have difficulty in finding a person skilled in computer graphics to generate the designs to be printed on the shirts. Iliana recently hired a graphics designer in that position for Shirts and More at a rate of $4,200 per month plus 5.20 for each shirt printed. Ben believes he can find a recently graduated graphics design student to work for the same rate lliana is paying her designer. Ben was fortunate in finding a commercial building for rent near the University and the downtown area. The landlord requires a one-year lease. Although the monthly rent of $3.000 is more than Ben had anticipated paying, the building is nice, has adequate parking, and there is room for expansion. Ben anticipates that 75% of the building will be used in the silk-screen process while 25% will be used for sales. Ben's fraternity brothers have encouraged him to advertise weekly in the Eastern University student newspaper. Upon inquiring Ben found that a 3" x 3" ad would cost $40 per week. Ben also plans to run a weekly ad in the local newspaper that will cost him $80 per week. (Note: Use 52 weeks per year instead of 4 weeks per month ) Ben wants to sell a large number of quality sweatshirts at a reasonable cost He estimates the selling price of each customized shirt to be $32 All sales are credit sales Iliana has suggested that he should ask customers to pay for 50% of their purchases in the quarter purchased 35% in the quarter following the purchases and 15% in the second quarter following the purchases Since Ben will be making custom sweatshirts he is not keeping any extra inventory of finished shirts After talking to the insurance agent and the property valuation administrator in his municipality, Ben estimates that the property taxes and insurance on the machinery will cost $2.800 annually, while property tax and insurance on display furniture and cash register will total $400 annually. The property taxes will be paid each quarter. Iliana reminded Ben that maintenance of the machines is required for the silk-screen process. In addition, Ben realizes that he must consider the cost of utilities. The building Ben wants to rent is roughly the same size as the building occupied by Shirts and More In addition, Shirts and More sells approximately the same number of shirts Ben plans to sell in his store. Therefore, Ben is confident that the maintenance and utility costs for his shop will be comparable to the maintenance and utility costs for Shirts and More as below. Ben will use the regression method to estimate variable and fixed costs for the purpose of budgeting. Shirts Sold Maintenance Cost 890 956 983 January February March April May June July August September October November December 2,600 4,000 4,240 1,440 1,688 2.104 3.136 1,672 4.800 4,086 4,214 5.220 810 860 870 903 853 1.060 1.015 1,007 1,120 Utility Cost 908 1.114 1.127 825 869 871 959 838 1.266 1.223 1.124 1,305 (Note: When estimating maintenance and utility costs, input data on a worksheet and use Excel functions to estimate the slope and the intercept. When you budget maintenance and utility costs, you should use formulas linked to the estimates of slope and intercept, and related quantity of shirts, instead of inputting numbers by hand. Use Excel to display the total costs to the whole dollar.) Ben estimates the number of shirts to be sold in the first five quarters, beginning January 2023, to be: . First quarter 2023 Second quarter 2023 Third quarter 2023 Fourth quarter 2023 First quarter 2024 9,750 4,700 8,640 12,120 10.000 . Seeing how determined his son was to become an entrepreneur, Ben's father offered to co-sign a note for an amount up to $40,000 to help Ben open his sweatshirt shop, Screen Threads. The loan officer advised Ben that the interest rate on a 12- month loan would be 15 percent. Ben expects the loan to be taken out January 1, 2023 and paid back, along with interest expense, on December 31, 2023. Ben will also invest $10,000 of his own saved money. After graduating from Southwestern University in College Town, USA with a degree in business, Ben Kraws realized that he wanted to remain in College Town. After a number of unsuccessful attempts at getting a job in his discipline, Ben decided to go into business for himself. In thinking about his business venture, Ben determined that he had four criteria for the new business . . First, he wanted to do something that he would enjoy. Second, he wanted a business that would give back to the community Third, he wanted a business that would grow and be more successful every yea Fourth, realizing that he was going to have to work very hard, Ben wanted a business that would generate a minimum operating income of $225,000 annually . While reflecting on the criteria he had outlined, Ben, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in College Town to have custom sweatshirts made using a silk- screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit "Shirts and More." Ben had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning such a shop. He realized that a sweatshirt shop in College Town had the potential to meet all four criteria he had set. Ben set up an appointment with Iliana Levario, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Iliana liked Ben and was intrigued by his entrepreneurial spirit, she answered many of Ben's questions In addition, Iliana provided information concerning the type of equipment Ben would need for his business and the average useful life. Iliana knows a competitor who is retiring and would like to sell his equipment. Ben can purchase the equipment at the beginning of 2023 and the owner is willing to give him terms of 50% due upon purchase and 25% due the quarter following the purchase, and 25% due the second quarter following the purchase Ben will purchase the following equipment January 1, 2023 Equipment Purchase Hand operated press that applies ink to shirt Screens, other smaller items. Light exposure table Dryer conveyer belt that makes ink dry on the shirts Computer graphics software and color printer Display furniture Used Cash register S $ $ S $ $ $ Cost 8,500 2,400 1.400 2,600 3.760 2,400 1.100 Useful life - Years 5 2 10 10 4 10 5 Ben will use the straight-line method (assuming no residual value) to record the depreciation of the equipment Ben has decided to use the sweatshirt supplier recommended by Iliana He learned the purchase cost per sweatshirt to be silk-screened (direct materials) would be $16.50 Riana encouraged Ben to maintain an ending inventory of shirts equal to 10% of the next quarter's sales lliana has also encouraged Ben to ask the sweatshirt supplier for terms of 50% of a quarter's purchases to be paid in the quarter of purchase with the remaining 50% of the quarter's purchases to be paid in the quarter following the purchase. Ben also learned from talking with Iliana that the ink (indirect materials) used in the silk-screen process costs approximately $1.75 per shirt. Knowing that the silk-screen process is somewhat labor intensive, Ben plans to hire college students to help with the silk-screen process with the wage rate of $14.00 per hour. Each shirt needs approximately 0.2 hours to complete the silk-screen process. In addition, Ben will need one person to take orders, bill customers, and operate the cash register. Gigi Gaspar, who is currently Director of Student Development at Southwestern, has approached Ben about a job in sales. Gigi knows the officers of all o the student organizations on College. In addition, she is very active in the community. Ben thinks Gigi can bring in a lot of business. Additionally, she also has the clerical skills needed for the position. Because of her contacts, Ben is willing to pay Gigi $4.000 per month plus a commission of 2.0% of sales revenues. Ben realizes that he will have difficulty in finding a person skilled in computer graphics to generate the designs to be printed on the shirts. Iliana recently hired a graphics designer in that position for Shirts and More at a rate of $4,200 per month plus 5.20 for each shirt printed. Ben believes he can find a recently graduated graphics design student to work for the same rate lliana is paying her designer. Ben was fortunate in finding a commercial building for rent near the University and the downtown area. The landlord requires a one-year lease. Although the monthly rent of $3.000 is more than Ben had anticipated paying, the building is nice, has adequate parking, and there is room for expansion. Ben anticipates that 75% of the building will be used in the silk-screen process while 25% will be used for sales. Ben's fraternity brothers have encouraged him to advertise weekly in the Eastern University student newspaper. Upon inquiring Ben found that a 3" x 3" ad would cost $40 per week. Ben also plans to run a weekly ad in the local newspaper that will cost him $80 per week. (Note: Use 52 weeks per year instead of 4 weeks per month ) Ben wants to sell a large number of quality sweatshirts at a reasonable cost He estimates the selling price of each customized shirt to be $32 All sales are credit sales Iliana has suggested that he should ask customers to pay for 50% of their purchases in the quarter purchased 35% in the quarter following the purchases and 15% in the second quarter following the purchases Since Ben will be making custom sweatshirts he is not keeping any extra inventory of finished shirts After talking to the insurance agent and the property valuation administrator in his municipality, Ben estimates that the property taxes and insurance on the machinery will cost $2.800 annually, while property tax and insurance on display furniture and cash register will total $400 annually. The property taxes will be paid each quarter. Iliana reminded Ben that maintenance of the machines is required for the silk-screen process. In addition, Ben realizes that he must consider the cost of utilities. The building Ben wants to rent is roughly the same size as the building occupied by Shirts and More In addition, Shirts and More sells approximately the same number of shirts Ben plans to sell in his store. Therefore, Ben is confident that the maintenance and utility costs for his shop will be comparable to the maintenance and utility costs for Shirts and More as below. Ben will use the regression method to estimate variable and fixed costs for the purpose of budgeting. Shirts Sold Maintenance Cost 890 956 983 January February March April May June July August September October November December 2,600 4,000 4,240 1,440 1,688 2.104 3.136 1,672 4.800 4,086 4,214 5.220 810 860 870 903 853 1.060 1.015 1,007 1,120 Utility Cost 908 1.114 1.127 825 869 871 959 838 1.266 1.223 1.124 1,305 (Note: When estimating maintenance and utility costs, input data on a worksheet and use Excel functions to estimate the slope and the intercept. When you budget maintenance and utility costs, you should use formulas linked to the estimates of slope and intercept, and related quantity of shirts, instead of inputting numbers by hand. Use Excel to display the total costs to the whole dollar.) Ben estimates the number of shirts to be sold in the first five quarters, beginning January 2023, to be: . First quarter 2023 Second quarter 2023 Third quarter 2023 Fourth quarter 2023 First quarter 2024 9,750 4,700 8,640 12,120 10.000 . Seeing how determined his son was to become an entrepreneur, Ben's father offered to co-sign a note for an amount up to $40,000 to help Ben open his sweatshirt shop, Screen Threads. The loan officer advised Ben that the interest rate on a 12- month loan would be 15 percent. Ben expects the loan to be taken out January 1, 2023 and paid back, along with interest expense, on December 31, 2023. Ben will also invest $10,000 of his own saved money