Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past

Question

Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2014. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours. The master overhead budget was prepared on the expectation that 479,500 direct labor hours will be worked during the year. In June, 40,410 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.45, indirect materials $0.50, factory utilities $0.36, and factory repairs $0.25. Fixed: same as budgeted.

Explanation / Answer

on the basis of budgeted rates on the basis of actual rates estimated direct labor hours for june indirect labor 39958.333 0.42 16782.5 indirect labor 40410 0.45 18184.5 indirect material 39958.333 0.51 20378.75 indirect material 40410 0.5 20205 factory utilities 39958.333 0.34 13585.833 factory utilities 40410 0.36 14547.6 factory repairs 39958.333 0.2 7991.6667 factory repairs 40410 0.25 10102.5 total of variable manufacturing overhead 58738.75 total of variable manufacturing overhead 63039.6 supervision 43992 supervision 43992 depreciation 18084 depreciation 18084 insurance 15492 insurance 15492 rent 23100 rent 23100 total of fixed overhead 100668 total of fixed overhead 100668 total overhead 159406.75 total overhead 163707.6

Related Questions

Navigate

• Browse (All)
• Browse Z
• Subjects

---

---

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