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Wells Enterprises manufactures a component that is processed successively by Department I and Department II....

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Accounting

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Wells Enterprises manufactures a component that is processed successively by Department I and Department II. Manufacturing overhead is applied to units produced at the following budget costs. Manufacturing Overhead per Unit Fixed Variable Total $ 25 $ 8 $ 33 18 6 24 Department I Department II These budgeted overhead costs per unit are based on the normal volume of production of 10,000 units per month. In January, variable manufacturing overhead in Department II is expected to be 15 percent above budget because of major scheduled repairs to equipment. The company plans to produce 12,000 units during January. Prepare a budget for manufacturing overhead costs in January using three column headings: Total, Department I, and Department II. Answer is not complete. Dept. Il WELLS ENTERPRISES Budget for Manufacturing Overhead Costs Total Dept. 1 Fixed manufacturing overhead: Dept. 1 & 11 $ 608,800 X $ 250,000 Variable manufacturing overhead: Dept. I & II 96,000 Totals $ 608,800 $ 346,000 $ 180,000 82,800 262,800 $

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