Preparing an Overhead Budget Tulum Inc. makes a Mexican chocolate mix. Budgeted direct labor hours for the first 3 months of the coming year are: January 9,880 8,800 February March 12,200 The variable overhead rate is $0.50 per direct labor hour. Fixed overhead is budgeted at $3,140 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Tulum Inc. Overhead Budget For the Coming First Quarter Overhead: January February March Total Total direct labor hrs Variable overhead rate Total variable overhead Add: Fixed overhead Total overhead