* Cengage * CengageNOV|Online tex e - 5 X + C O sjc.cengagenow.com/ili/takeassig
ID: 2566661 • Letter: #
Question
* Cengage * CengageNOV|Online tex e - 5 X + C O sjc.cengagenow.com/ili/takeassignment/takeAssignmentMain.do? takeassignmentSessionLocator=assignment-take Q* a o e e! ebook 10. O Flexible overhead Budget 11. O Carson Wood Products Company prepared the following factory overhead cost budget for the Press Department for April 2011, during which it expected to require 10,000 hours of productive capacity in the departmmerit: Variable overhead cost: Indirect factory labor $92,000 Power and light 3,1an Indirect materials 29,000 Total variable cnst $128,11 Fixed overhead cast: Supervisory sellaries $43,090 Depreciation of plant and equipment 27,080 Insurance and property taxes 17,230 Total Fixed cost $7,400 Tocell factory overhead cost $210, 500 Hide ASGuming that the estimated posts for May are the same as for April, prepare a ficxitlc factory overhead coat budget for the Press Department for May for 8,000, 10,000, and 12,0o0 hours af production. Rourd your interim computations to the nearest cent, it required. Enter all ermounts es positive numbers. Carson Wood Products Company Factory Overhead Cost Budget-Press Department For the Month Ended May 31, 2014 Direct labor hours variable overhead cast: noireet factory labor > Power and light Inicirect raterials Total variabile factory overhead Fixed factory overhead cost: O Type here to search 0 e Á . 9 wa G^ O gx A FA F09 PM 11/8/217Explanation / Answer
Solution:
In the question variable and fixed factory overhead costs are given. Variable Factory Overheads are the overheads which vary with the output i.e. Variable Overheads are varied if the direct labor hours increase and variable overheads are decrease if the Direct labor hours decreases.
Fixed Factory Overheads are the overheads which do not vary with the output. It means it will be remain same whether direct labor hours increase or decrease.
Carson Wood Products Company
Factory Overhead Cost Budget- Press Department
For the Month Ended May 31, 2014
Direct labor hours
8,000
10,000
12,000
Variable overhead cost:
Indirect factory labor
$73,600
(8000*9.2)
$92,000
$110,400
(12000*9.2)
Power and light
$2,480
(8000*0.31)
$3,100
$3,720
(12000*0.31)
Indirect materials
$22,400
(8000*2.8)
$28,000
$33,600
(12000*2.8)
Total variable factory overhead
$98,480
$123,100
$147,720
Fixed Factory Overhead Cost:
Supervisory Salaries
$43,090
$43,090
$43,090
Depreciation of plant and equipment
$27,080
$27,080
$27,080
Insurance and property taxes
$17,230
$17,230
$17,230
Total Fixed factory overhead
$87,400
$87,400
$87,400
Total Factory Overhead
$185,880
$210,500
$235,120
Note 1 – Calculation of Variable Overhead per direct labor hour
Direct labor hours
10,000
Variable overhead cost:
Total Variable Overheads
Variable Overheads per labor hour
Indirect factory labor
$92,000
$9.20
(92000 / 10000)
Power and light
$3,100
$0.31
(3100 / 10,000)
Indirect materials
$28,000
$2.8
(28000/10000)
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Carson Wood Products Company
Factory Overhead Cost Budget- Press Department
For the Month Ended May 31, 2014
Direct labor hours
8,000
10,000
12,000
Variable overhead cost:
Indirect factory labor
$73,600
(8000*9.2)
$92,000
$110,400
(12000*9.2)
Power and light
$2,480
(8000*0.31)
$3,100
$3,720
(12000*0.31)
Indirect materials
$22,400
(8000*2.8)
$28,000
$33,600
(12000*2.8)
Total variable factory overhead
$98,480
$123,100
$147,720
Fixed Factory Overhead Cost:
Supervisory Salaries
$43,090
$43,090
$43,090
Depreciation of plant and equipment
$27,080
$27,080
$27,080
Insurance and property taxes
$17,230
$17,230
$17,230
Total Fixed factory overhead
$87,400
$87,400
$87,400
Total Factory Overhead
$185,880
$210,500
$235,120
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.