(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.) ...
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(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.)
Bumblebee Company estimates that 378,500 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year $166,540 83,270 37,850 75,700 30,280 $393,640 587,840 Indirect labor Supervision Depreciation Insurance Rent Property taxes 68,760 Indirect materials 30,000 Repairs 24,360 Utilities 18,480 Lubricants $229,440 It is estimated that direct labor hours worked each month will range from 25,800 to 36,600 hours. During October, 25,800 direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs: Supervision $7,320, Depreciation 5,730, Insurance $2,460, Rent $2,030, and Property taxes $1,540 Variable overhead costs: Indirect labor $12,352, Indirect materials, $5,336, Repairs $2,510, Utilities $5,460, and Lubricants $2,304 (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,600 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.)
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