Managerial Accounting: P24-1A Bumblebee Company estimates that 387,400 direct labor hours

Managerial AccountingP24-1A
Bumblebee Company estimates that 387,400 direct labor hours will be worked during the coming year, 2017, in the Packaging Department.  On the basis, the budgeted manufacturing overhead cost data are computed for the year.
Fixed Overhead CostsVariable Overhead Costs
Supervision 86,640 Indirect labor 154,960
Depreciation 72,720 Indirect materials 85,228
Insurance 28,320 Repairs 69,732
Rent 26,280 Utilities 58,110
Property Taxes 22,080 Lubricants 34,866
$236,040 $402,896
 
It is estimated that direct labor hours worked each month will range from 24,300 to 34,200 hours.
During October, 24,300 direct labor hours were worked and the following overhead costs were incurred.
Fixed overhead costs:  Supervision $7,220, Depreciation $6,060, Insurance $2,320, Rent $2,190, and Property taxes $1,840.
Variable overhead costs: Indiret labor $10,790, Indirect materials $4,846, Repairs $,4,304, utilities $4,025, and Lubricants $2,457.
 
Instructions:
a. Prepare a monthly manufacturing overhead flexible budget for each increment of 3,300 direct labor hours over the relevant range for the year ending December 31, 2017.  (List variable costs before fixed costs)
b. Prepare a flexible budget report for October. (List variable costs before fixed costs).
 
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