The manufacturing overhead budget:
I. Compares revenue to overhead
II. Forecasts overhead costs per unit for cost of goods sold calculations
III. Forecasts total overhead costs
A) I and III only
B) I and II only
C) I, II, and III
D) II and III only

Question

Quizplus · Accepted Answer

The manufacturing overhead budget primarily forecasts total overhead costs and allocates these costs per unit for accurate cost of goods sold calculations. It does not compare revenue to overhead; that's more the function of other financial statements like the income statement.

The Manufacturing Overhead Budget