Flexible Overhead Budget Leno Manufacturing Company prepared the following facto
ID: 2527640 • 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 10,000 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 8,000, 10,000, and 12,000 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 $97,000 Power and light 3,300 Indirect materials 22,000 Total variable overhead cost $122,300 Fixed overhead costs: Supervisory salaries $42,810 Depreciation of plant and equipment 26,910 Insurance and property taxes 17,120 Total fixed overhead cost 86,840 Total factory overhead cost $209,140 Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 10,000 Direct labor hours Variable overhead costs: 8,000 12,000 Indirect factory labor Power and light Indirect materials Total variable factory overhead $ Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead Total factory overheadExplanation / Answer
Factory overhead cost budget :
Direct labour hour 8000 10000 12000 Variable overhead cost Indirect factory labour 77600 97000 116400 Power and light 2640 3300 3960 Indirect material 17600 22000 26400 Total variable factory overhead 97840 122300 146760 Fixed factory overhead cost Supervisory salaries 42810 42810 42810 Depreciation of plant and equipment 26910 26910 26910 Insurance and property taxes 17120 17120 17120 Total fixed factory overhead 86840 86840 86840 Total factory overhead 184680 209140 233600Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.