Myers company uses a flexible budget for manufactoring overhead based on direct labor hours.Variable manufactoring overhead costs per direct labor hour as follows.
Indirect labor $1.20
Indirect materials .70
Utilities .20
Fixed overhead costs per month are supervision $4300, Depreciation $2000, and property taxes $700. The company believes it will normally operate in a range of $8100 -12000 direct labor hours per month.
Prepare a monthly manufactoring overhead flexible budget for 2017 for the expected range of activity, using increments of 1300 direct labor hours
manufactoring overhead flexible budget for 2017
Activity level
Direct labor hours _______ ________ ________ ________
Variable costs
Indirect labor _______ ________ _______ _______
Indirect materials ________ ______ _____ ______
Utilities _____ ____ _____ _____
total variable costs _____ _____ _____ _____
Fixed costs
Depreciation _____ _____ _____ _____
Propety taxes _____ ______ ____ ______
Supervision ____ ____ ____ ____
Total fixed costs ____ ____ ____ ____
Total costs ___ _____ ____ ____
Myers company uses a flexible budget for manufactoring overhead based on direct labor hours.Variable manufactoring overhead costs per direct labor hour as follows.
Indirect labor $1.20
Indirect materials .70
Utilities .20
Fixed overhead costs per month are supervision $4300, Depreciation $2000, and property taxes $700. The company believes it will normally operate in a range of $8100 -12000 direct labor hours per month.
Prepare a monthly manufactoring overhead flexible budget for 2017 for the expected range of activity, using increments of 1300 direct labor hours
manufactoring overhead flexible budget for 2017
Activity level
Direct labor hours _______ ________ ________ ________
Variable costs
Indirect labor _______ ________ _______ _______
Indirect materials ________ ______ _____ ______
Utilities _____ ____ _____ _____
total variable costs _____ _____ _____ _____
Fixed costs
Depreciation _____ _____ _____ _____
Propety taxes _____ ______ ____ ______
Supervision ____ ____ ____ ____
Total fixed costs ____ ____ ____ ____
Total costs ___ _____ ____ ____
Related questions
Baxter's Inc. estimates that 376,800 direct labor hours will beworked during the coming year, 2014, in the Packaging Department.On this basis, the following budgeted manufacturing overhead costdata are computed for the year.
Fixed Overhead Costs | Variable Overhead Costs | |||||
| Supervision | $94,320 | Indirect labor | $131,880 | |||
| Depreciation | 62,160 | Indirect materials | 79,128 | |||
| Insurance | 30,360 | Repairs | 45,216 | |||
| Rent | 21,840 | Utilities | 90,432 | |||
| Property taxes | 22,320 | Lubricants | 26,376 | |||
$231,000 | $373,032 | |||||
It is estimated that direct labor hours worked each month willrange from 29,900 to 38,000 hours.
During October, 29,900 direct labor hours were worked and thefollowing overhead costs were incurred.
Fixed overhead costs: supervision $7,860, depreciation$5,180, insurance $2,503, rent $1,820, and property taxes$1,860.
Variable overhead costs: indirect labor $11,423, indirectmaterials, $5,939, repairs $3,534, utilities $7,452, and lubricants$2,508.
1. Prepare a monthly manufacturing overhead flexible budget foreach increment of 2,700 direct labor hours over the relevant rangefor the year ending December 31, 2014. (List variablecosts before fixed costs.)
2. Prepare a flexible budget report for October.(List variable costs before fixed costs. If answer iszero, please enter 0, do not leave any fieldsblank.)
3. Comment on managementâs efficiency in controllingmanufacturing overhead costs in October.
