Flexible Overhead Budget Leno Manufacturing Company prepared the following facto
ID: 2527748 • 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 14,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor $113,400 Power and light 4,620 Indirect materials 40,600 Total variable overhead cost $158,620 Fixed overhead costs: Supervisory salaries $55,520 Depreciation of plant and equipment 34,900 Insurance and property taxes 22,210 Total fixed overhead cost 112,630 Total factory overhead cost $271,250 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 12,000, 14,000, and 16,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 12,000 14,000 16,000 Variable overhead costs: 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 overhead $ $ $
Explanation / Answer
Leno Manufacturing Company
Factory Overhead Cost Budget : Press Department
For the month ended November 30
Direct Labor Hours 12,000 14,000 16,000 Variable Overhead Costs Indirect Factory Labor 97,200 113,400 129,600 Power and Light 3,960 4,620 5,280 Indirect Materials 34,800 40,600 46,400 Total Variable Overhead Cost 135,960 158,620 181,280 Fixed Overhead Cost Supervisory Salaries 55,520 55,520 55,520 Depreciation of Plant and Equipment 34,900 34,900 34,900 Insurance and Property Taxes 22,210 22,210 22,210 Total Fixed Overhead Cost 112,630 112,630 112,630 Total Factory Overhead Cost 248,590 271,250 293,910Related Questions
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