For Roche Inc., variable manufacturing overhead costs are expected to be $20,730 in the first quarter of 2020, with $4,370 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,180 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.

Manufacturing Overhead Budgets:

Quarter 1:

Variable Overhead - $20,730

Fixed Overhead - $35,180

Total for quarter 1 = $55,910

Quarter 2:

Variable Overhead - $25,100

Fixed Overhead - $35,180

Total for quarter 2 = $60,280

Quarter 3:

Variable Overhead - $29,470

Fixed Overhead - $35,180

Total for quarter 3 = $64,650

Quarter 4:

Variable Overhead - $33,840

Fixed Overhead - $35,180

Total for quarter 4 = $69,020

Total for the year:

Variable Overhead $ (20,730 + 25,100 + 29,470 + 33,840) = $109,140

Fixed Overhead $ (35,180 x 4) = $140,720

Total = $249,860

Explanation:

a) Fixed overhead is estimated to be $35,180 each quarter. So the total for the year will be $35,180 x 4 quarters = $140,720.

b) The variable overhead in the first quarter was estimated to be $20,730. In the second quarter, it will increase by $4,370, to give $25,100 (20,730 + 4,370).

In the third quarter, it will increase by $4,370 on the second quarter's to give $29,470 (25,100 + 4,370).

In the fourth quarter, it will increase by $4,370 on the figure of the third quarter to give $33,840 (29,470 + 4,370).