cooper manufacturing has prepared the following monthly flexible manufacturing o
ID: 2467277 • Letter: C
Question
cooper manufacturing has prepared the following monthly flexible manufacturing overhead budget for its mixing department.
cooper manufacturing
monthly flexible manufacturing overhead budget
mixing department
activity level
direct labor hours 3,000 4,000
variable costs
indirect labor 15,000 20,000
indirect materials 3,000 4,000
factory supplies 4,500 6,000
total variable 22,500 30,000
fixed costs
depreciation 20,000 20,000
supervision 12,000 12,000
property tax 15,000 15,000
total fixed 47,000 47,000
total costs 69,500 77,000
instructions
prepare a flexible budget at the 5,000 direct labor hours of activity.
Explanation / Answer
Ans-
Flexible Budget Performance Report Activity Level 3,000 4,000 5,000 Expenses: Variable Costs Indirect Labor 15,000 20,000 25,000 (15 per hour) Indirect Materials 3,000 4,000 5,000 (1 per hour) Factory Supplies 4,500 6,000 7,500 (1.5 per hour) Total Variable Cost 22,500 30,000 37,500 Fixed Costs Depricaition 20,000 20,000 20,000 Supervision 12,000 12,000 12,000 Property Tax 15,000 15,000 15,000 Total Fixed Cost 47,000 47,000 47,000 Total 69,500 77,000 84,500Related Questions
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