HV INSTRUCTOR FULL SCREEN ASSIGNMENT RESOURCES Problem 24-2A Zelmer Company manu
ID: 2551442 • Letter: H
Question
HV INSTRUCTOR FULL SCREEN ASSIGNMENT RESOURCES Problem 24-2A Zelmer Company manufactures tablecloths. sales have grown rapidly over the past 2 vears. As a result, the president has instaled a budgetary control following data were used in developing the master manufacturing overhead budget for the Ironin Graded Homework g Department, which is based on an activity index of direct labar hours. system for 2017. The Rate per Direct Variable costsLabor Hour Indirect labor Indirect materials Factory utilities Factory repairs Annual Fixed Costs Obiective $46,800 16,920 14,760 28,080 $0.42 Supervision 0.55 Depreciation 0.32 Insurance 0.20 Rent The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the vear. In June. 46,100 direct labor hours were worked. At that level of activity, actual costs were as shown below Variable-per direct labor hour: Indirect labor so.44, Indirect materials s0.54, factary utilities s0.35, and factory repairs $0.24 Fixed: same as budgeted.Explanation / Answer
a. Zelmer Company
Monthly Manufacturing Overhead Flexible Budget
Ironing Department
For the year 2017
b. Zelmer Company
Ironing Department
Manufacturing Overhead Flexible Budget Report
For the month ended June 30, 2017
c. The formula is $ 8,880 + Total Variable Costs of $ 1.49 per direct labor hour.
Activity Level ( Direct Labor Hours) 35,000 40,800 46,600 52,400 Variable Costs Indirect Labor 14,700 17,136 19,576 22,008 Indirect Materials 19,250 22,440 25,630 28,820 Factory Utilities 11,200 13,056 14,912 16,768 Factory Repairs 7,000 8,160 9,320 10,480 Total Variable Costs 52,150 60,792 69,438 78,076 Fixed Costs Supervision 3,900 3,900 3,900 3,900 Depreciation 1,410 1,410 1,410 1,410 Insurance 1,230 1,230 1,230 1,230 Rent 2,340 2,340 2,340 2,340 Total Fixed Costs 8,880 8,880 8,880 8,880 Total Costs 61,030 69,672 78,318 86,956Related Questions
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