Hampton Freeze Inc

At Hampton Freeze Inc the manufacturing overhead is spread into variable and fixed components. The variable component is $4 per direct labor-hour and the fixed component is $60,600 per quarter. Because the variable component of the manufacturing overhead depends on direct labor, the first line in the manufacturing overhead budget consists of the budgeted direct labor hours from the direct labor budget (see direct labor budget).

Manufacturing Overhead Budget

Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of production other than direct materials and direct labor. Example of a Manufacturing Overhead Budget: