All budgeted overhead costs, except for budgeted fixed overhead, are shown.
3rd Quarter
4th quarter
Budgeted units of production
6,000
7,500
Budgeted variable overhead costs
15,000
18,750
Budgeted fixed overhead costs
?
?
Budgeted amortization including in total overhead
3,000
3,000
Budgeted cash disbursements for total overhead
20,000
23,750
1. a) What is the amount of budgeted fixed overhead?
a. $8,000
b. $6,000
c. $9,000
d. $3,000
b) Explain why and how it is calculated for the 1st and 2nd Quarters: