Principles of Cost Accounting: P9-4 Hornick and Sena, the systems consultants
Principles of Cost Accounting P9-4 Preparing an overhead budget and an other expense budget Hornick and Sena, the systems consultants in P9-3, budgeted overhead and other expenses as follows for the year ended December 31, 2013:
Overhead: Depreciation – equipment $60,000 Depreciation – building 135,000 Fringe benefits 385,000 Photocopying 95,000 Secretarial Support 465,000 Telephone/fax 115,000 Utilities 193,000 Other Direct Expenses: Travel 123,000 Meals 37,000
Required: 1. Prepare an overhead budget. 2. Prepare an other expense budget.