Requirement #$8$: Develop the factory overhead cost budget. Quivers Inc. began operations on January $1$ of the current year. The company produces eight$-$ounce bottles of jet

wax called Ophelia Shine. The wax is sold wholesale in $12-$bottle cases for $$100$ per case. There is a selling commission

of $$20$ per case $.$ The January direct materials, direct labo r $,$ and factory overhead costs are as follows:

DIRECT MATERIALS

DIRECT LABOR

FACTORY OVERHEAD Part B$.$ Budgets

During July of the current year, the management of Quivers Inc. asked the controller, Robin,

to prepare August manufacturing and income statement budgets. Demand was expected

to be $1,500$ cases of jet wax at $$100$ per case for August. Inventory planning information is

provided as follows :

Finished Goods Inventory

Materials Inventory

There was negligible work in process inventory assumed for either the beginning or end of the

month; thus, none was assumed. In addition, there was no change in the cost per unit or

estimated units per case operating data from January.

Instructions

$5.$Prepare the August production budget.

$6.$Prepare the August direct materials purchases budget.

$7.$Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour.

$8.$Prepare the August factory overhead cost budget.

$9.$Prepare the August budgeted income statement, including selling expenses. Requirement #$9$: Create the budgeted income statement.

Direct materials inventory, August $1$

Direct materials inventory, August $31$