Manufacturing Overhead Cost Budget World-Wide Gym, Inc. makes weight lifting equipment. It designs and manufactures its own
Question:
Manufacturing Overhead Cost Budget World-Wide Gym, Inc. makes weight lifting equipment. It designs and manufactures its own weight plates, as well as home gym sets such as workout towers, strength cages, and universal stations. Its variable manufacturing overhead (MOH) costs are determined as a result of either the pounds of weight plates or the number of gym sets manufactured. The variable MOH rates are as follows: $0.05 and $0.02 per pound of weight plates for materials handling and storage costs, respectively; and $45 and $12 per gym set for insurance and inspection work, respectively. The fixed MOH costs each month are $2,200 for property taxes, $3,200 for plant depreciation, $450 for utilities, and $17,000 for research and development.
The following monthly manufacturing volumes are expected for the second quarter of 2009:
Required:
Prepare a monthly manufacturing overhead budget for World-Wide Gym, Inc.
Step by Step Answer:
Accounting Concepts And Applications
ISBN: 9780324376159
10th Edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain