Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change.

The overhead budget shows forecasted variable and fixed overhead costs for the coming year. For Texas Rex the variable overhead rate is $5 per direct labor hour. Fixed overhead is budgeted at $1645 per quarter.

Texas Rex, Inc.

Overhead Budget

For the year ending December 31, 2018

Q1 Q2 Q3 Q4 Total

Budgeted Direct Labor hours

Variable Overhead Rate _______ _______ ________ ________ _______

Budgeted Variable Overhead

Budgeted Fixed Overhead _______ _______ ________ _______ ________

Total Overhead Cost

Calculate the Total Unit Cost:

Direct Materials

Direct Labor

Overhead

Total Unit Cost