Flexible Overhead Budget Leno Manufacturing Company prepared the following facto
ID: 2517844 • Letter: F
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 8,000 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 6,000, 8,000, and 10,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.
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2- The following data relate to factory overhead cost for the production of 4,000 computers:
If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $178,500, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variable overhead cost: Indirect factory labor $70,400 Power and light 3,520 Indirect materials 17,600 Total variable overhead cost $91,520 Fixed overhead cost: Supervisory salaries $32,030 Depreciation of plant and equipment 20,130 Insurance and property taxes 12,810 Total fixed overhead cost 64,970 Total factory overhead cost $156,490Explanation / Answer
LENO MANUFACTURING COMPANY FACTORY OVERHEADS COST BUDGET: FOR THE MONTH OF NOVEMBER Direct Labour hours 6000 8000 10000 Variable Overheads cost: Indirect factory labour 52800 70400 88000 Power and light 2640 3520 4400 Indirect material 13200 17600 22000 Total Variable Factory OH 68640 91520 114400 Fixed factory Overheads: Supervisor Ssalaries 32030 32030 32030 Depreciation 20130 20130 20130 Insurance and prperty tax 12810 12810 12810 Total fixed factory Overheads 64970 64970 64970 Total Factory Overheads 133610 156490 179370
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