Fixed Overhead Costs Variable Overhead Costs $86,640 $172,537 76,800 77,091 24,7

Question

Fixed Overhead Costs

Variable Overhead Costs

$86,640

$172,537

76,800

77,091

24,720

51,394

18,000

73,420

14,520

33,039

$220,680

$407,481

Warning

Don't show me this message again for the assignment

Ok

Cancel

COOK COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2014

Warning

Don't show me this message again for the assignment

Ok

Cancel

Link to Text

Link to Video

COOK COMPANY
Packaging Department
Manufacturing Overhead Flexible Budget Report
For the Month Ended October 31, 2014

Difference

Budget

Actual Costs

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)

Cook Company estimates that 367,100 direct labor hours will be worked during the coming year, 2014, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, are computed for the year.

Fixed Overhead Costs

Variable Overhead Costs

Supervision

$86,640

Indirect labor

$172,537

Depreciation

76,800

Indirect materials

77,091

Insurance

24,720

Repairs

51,394

Rent

18,000

Utilities

73,420

Property taxes

14,520

Lubricants

33,039

$220,680

$407,481

It is estimated that direct labor hours worked each month will range from 25,200 to 32,100 hours.

During October, 25,200 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: supervision $7,220, depreciation $6,400, insurance $2,020, rent $1,500, and property taxes $1,210.

Variable overhead costs: indirect labor $12,921, indirect materials, $4,822, repairs $3,479, utilities $5,409, and lubricants $2,691.

Warning

Don't show me this message again for the assignment

Ok

  

Cancel

  

Explanation / Answer

Variable cost 25,200 27,500 29,800 32,100 indirect labor@.47 11,844 12,925 14,006 15,087 indirect materials @.21 5,292 5,775 6,258 6,741 Repairs @.14 3,528 3,850 4,172 4,494 Utilities @ .20 5,040 5,500 5,960 6,420 Lubricants @ .09 2,268 2,475 2,682 2,889 Total variable cost $27,972 30,525 $33,078 $35,631 Fixed cost Supervision $7,220 7,220 7,220 7,220 Depreciation 6,400 6,400 6,400 6,400 Insurance 2,020 2,020 2,020 2,020 Rent 1,500 1,500 1,500 1,500 Property taxes 1,210 1,210 1,210 1,210 Total fixed cost 18,350 18,350 18,350 18,350 Total overhead $46,322 $48,875 $51,428 $54,981

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.