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Gundy Company expects to produce 1,251,600 units of product x in2017. Monthly production is expected to range from 79,400 to118,000 units. Budgeted variable manufacturing costs per unit aredirected materials $4, direct labor $9, and overhead $11. Budgetedfixed manufacturing costs per unit for depreciation are $6 andsupervision is $1. Prepare a flexible manufacturing budget for therelevant range value using 19,300 unit increments. (List variablecosts before fixed costs)

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Lelia Lubowitz
Lelia LubowitzLv2
28 Sep 2019

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Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments. (List variable costs before fixed 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 ___ _____ ____ ____

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.)

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