Flexible Overhead Budget Leno Manufacturing Company prepared the following facto

Question

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 16,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 14,000, 16,000, and 18,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Variable overhead costs:    Indirect factory labor $137,600    Power and light 5,600    Indirect materials 35,200       Total variable overhead cost $178,400 Fixed overhead costs:    Supervisory salaries $62,440    Depreciation of plant and equipment 39,250    Insurance and property taxes 24,980       Total fixed overhead cost 126,670 Total factory overhead cost $305,070

Explanation / Answer

Factory overhead cost budget :

Direct labour hours 14000 16000 18000 Variable overhead costs: Indirect factory labor 120400 137600 154800 Power and light 4900 5600 6300 Indirect materials 30800 35200 39600 Total variable factory overhead 156100 178400 200700 Fixed factory overhead costs: Supervisory salaries 62440 62440 62440 Depreciation of plant and equipment 39250 39250 39250 Insurance and property taxes 24980 24980 24980 Total fixed factory overhead 126670 126670 126670 Total factory overhead 282770 305070 327370

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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