The level of activity in the Car garage$$is measured by the number of cars fixed in the budget period.$$The budget for the current year is for $10,000$ cars.$$

Actual cars is expected to be met or even exceeded.$$During the first $5$ months $4,400$ cars were fixed.$$Assume the average number of cars per month remains constant.$$

The actual variable overhead costs incurred during this five$-$month period are as follows:Expense$$

Staffing

$54,330$

Power

$17,920$

Supplies

$35,150$

Other

$7,220$

Total$$

$114,620$

The accountant believes that the variable overhead costs will be incurred at the same rate$$during the remaining $7$ months.$$

Fixed overheads are budgeted for the whole year as follows:$$

Expense

Finance

$230,000$

Other cost

$90,000$

$450,000$

Questions

Present an$$overheads budget for the remaining seven$-$month period showing each expense. What is the total$$overhead cost for each car that would be incorporated into any statistics?$$

The place actually serviced $7,200$ cars during remaining $7-$month period. Actual variable overheads$$were $270,600$ and the actual fixed overheads were $254,000.$ In summary form, examine how well the$$home exercised control over its overheads?$$

Discuss$$benefits of budgets to an$$organisation$?$