Flexible Overhead Budget Leno Manufacturing Company prepared the following facto
ID: 2525629 • 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.
Variable overhead costs: Indirect factory labor $78,400 Power and light 2,960 Indirect materials 25,600 Total variable overhead cost $106,960 Fixed overhead costs: Supervisory salaries $37,440 Depreciation of plant and equipment 23,530 Insurance and property taxes 14,970 Total fixed overhead cost 75,940 Total factory overhead cost $182,900Explanation / Answer
Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 6,000 8,000 10,000 Variable overhead costs: Indirect factory labor 58800 78400 98000 Power and light 2220 2960 3700 Indirect materials 19200 25600 32000 Total variable factory overhead 80220 106960 133700 Fixed factory overhead costs: Supervisory salaries 37440 37440 37440 Depreciation of plant and equipment 23530 23530 23530 Insurance and property taxes 14970 14970 14970 Total fixed factory overhead 75940 75940 75940 Total factory overhead 156160 182900 209640
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