Overheads, Budgets and Cost Concepts

1. Outline the main types of overhead costs and provide examples of each

2. Outline the budgeting process illustrating how you would classify each cost & create a single budget

for the following:

a. Company with 5 persons paid minimum wage, health & insurance at 30% of salary, bonus and food cost at 10 and 5% respectively.

b.Light, water, HVAC, $50, $45, $20 respectively

C Depreciation on assets at 10% of asset value.

d. Maintenance cost at 6.8% of asset value