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Chrome File Edit View History Bookmarks People Window Help 4)) 21%)D, Sun 12:18 PM CengageNOWv2 I Online teaching and learning resource from Cengage Learning ? v2.cengagenow.com/irn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress-false; Chapter 22 Assignment eBook Calculator 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 20,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor Power and light Indirect materials $180,000 12,000 64,000 Total variable overhead cost $256,000 Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $80,000 50,000 32,000 Total fixed overhead cost 162,000 Total factory overhead cost $418,000 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 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 18,000 20,000 22,000 Variable overhead costs: Indirect factory labor Check My Work Previous Next 29

Explanation / Answer

Factory overhead cost Budget -press department Direct labor hours variable cost per unit 18000 20000 22000 variable overhead cost Indirect factory labor 180000/20000 = $ 9 18000*9= 162000 180000 22000*9=198000 Power and light 12000/20000 = $ .60 18000*.6= 10800 12000 13200 Indirect material 64000/20000=$ 3.2 18000*3.2=57600 64000 70400 Total variable factory overhead 230400 256000 281600 fixed factory overhead cost supervisory salaries 80000 80000 80000 Depreciation of plant and equipment 50000 50000 50000 Insurance and property taxes 32000 32000 32000 Total fixed factory overhead 162000 162000 162000 Total factory overhead 392400 418000 443600

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