Bumblebee Company estimates that 381,800 direct labor hours willbe worked during the coming year, 2017, in the PackagingDepartment. On this basis, the budgeted manufacturing overhead costdata are computed for the year.
Fixed OverheadCosts Variable Overhead Costs
Supervision$90,720 Indirect labor $160,356
Depreciation75,000 Indirect materials 106,904
Insurance25,440 Repairs 45,816
Rent21,720 Utilities 57,270
Property taxes12,360 Lubricants 26,726
=$225,240 = $397,072
It is estimated that direct labor hours worked each month willrange from 23,900 to 33,200 hours.
During October, 23,900 direct labor hours were worked and thefollowing overhead costs were incurred.
Fixed overhead costs: Supervision $7,560, Depreciation $6,250,Insurance $2,070, Rent $1,810, and Property taxes $1,030.
Variable overhead costs: Indirect labor $11,088, Indirectmaterials, $6,372, Repairs $2,818, Utilities $3,895, and Lubricants$2,033.
(A) Prepare a monthly manufacturing overhead flexible budget foreach increment of 3,100 direct labor hours over the relevant rangefor the year ending December 31, 2017. (List variable costs beforefixed costs.)
(B) Prepare a flexible budget report for October. (List variablecosts before fixed costs.)
Bumblebee Company estimates that 381,800 direct labor hours willbe worked during the coming year, 2017, in the PackagingDepartment. On this basis, the budgeted manufacturing overhead costdata are computed for the year.
Fixed OverheadCosts Variable Overhead Costs
Supervision$90,720 Indirect labor $160,356
Depreciation75,000 Indirect materials 106,904
Insurance25,440 Repairs 45,816
Rent21,720 Utilities 57,270
Property taxes12,360 Lubricants 26,726
=$225,240 = $397,072
It is estimated that direct labor hours worked each month willrange from 23,900 to 33,200 hours.
During October, 23,900 direct labor hours were worked and thefollowing overhead costs were incurred.
Fixed overhead costs: Supervision $7,560, Depreciation $6,250,Insurance $2,070, Rent $1,810, and Property taxes $1,030.
Variable overhead costs: Indirect labor $11,088, Indirectmaterials, $6,372, Repairs $2,818, Utilities $3,895, and Lubricants$2,033.
(A) Prepare a monthly manufacturing overhead flexible budget foreach increment of 3,100 direct labor hours over the relevant rangefor the year ending December 31, 2017. (List variable costs beforefixed costs.)
(B) Prepare a flexible budget report for October. (List variablecosts before fixed 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.
