Answers Answer continued Cook Company estimates that 310.z00 direct labor hours

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Answers Answer continued Cook Company estimates that 310.z00 direct labor hours will be worked during the coming year, 2014, in the Packaging Department. On this basis, the budoeted manufacturing Problem 22-1A (part level submission) Cook Company estimates that 318,700 overhead cost data, are computed for the ycar Depreciation Insurance Rent Property taxes 91,320 Indirect labor 70,080 Indirect materials 32,880 Repairs 29,280 Utilities 23,040 Lubricants 46,600 137,041 89,236 44,618 73,301 19,12 $363,318 tt is estimated that direct labor hours worked each month will range from 29,300 to 36,200 hours During October, 29,300 drect labor hours were worked and the following overhead costs were incurred Fixed overhead costs: supervision $7,610, depreciation $5,840, insurance $2,697, rent $2,440, and property taxes $1,920. Variable overhead costs: indrect labor $13,636, indirect materials, $7,732, repairs $4,055, utilities $7,147, and lubricants $2,167. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,300 direct labor hours over the relevant range for the year ending December 31, 2014. (List variable costs before fixed costs.)

Explanation / Answer

Particulars 29300 hrs 31600 hrs 33900 hrs 36200hrs Fixed overheads 20507 20507 20507 20507 variable overhead: Overhead given *Hrs level/29300hrs Indirect labor hrs 13636 14706 15777 16847 indirect material 7732 8339 8946 9553 repairs 4055 4373 4692 5010 utilities 7147 7708 8269 8830 Lubricant 2167 2337 2507 2677 Variable overhead 34737 37463 40191 42917 Total monthly overheads (Variable+Fixed) 55244 57970 60698 63424

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