Using the following information, prepare a factory overhead cost budget for Jacob Company where the total factory overhead cost is $206,500 at normal capacity
(100%). Include capacity at 60%, 80%, 100%, and 120%. Total variable cost is $15.25 per unit, and total fixed costs are $54,000. The information is for the month ended October 31.
(Hint: Determine units produced at normal capacity.)

Factory Overhead Cost Budget

A financial plan outlining the expected indirect manufacturing costs, including utilities, maintenance, and depreciation.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, such as raw materials and direct labor.

Total Fixed Costs

Total fixed costs are the sum of all costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.