111 A B fx C D E F G K L P10.1 Prepare flexible budget and budget report for manufacturing overhead Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs B Supervision $96,000 Indirect labor $126,000 Depreciation 72,000 Indirect materials 90,000 0 Insurance 30,000 Repairs 69,000 Rent 24,000 Utilities 72,000 12 Property taxes 18,000 Lubricants 18,000 13 $240,000 $375,000 14 15 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours. 16 17 18 During October, 27,000 direct labor hours were worked, and the following overhead costs were 19 incurred. 20 21 22 23 24 Fixed overhead costs: supervision $8,000, depreciation $6,000, insurance $2,460, rent $2,000, and property taxes $1,500. Variable overhead costs: indirect labor $12,432, indirect materials $7,680, repairs $6,100, utilities $6,840, and lubricants $1,920. 25 Instructions 26 27 28 29 30 31 a. Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2022. b. Prepare a flexible budget report for October. c. Comment on management's efficiency in controlling manufacturing overhead costs in October. 32 NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into 33 the yellow shaded input cells. 34 35 36 37 a. 38 39 40 BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2022 11 x fx A B D E F G a. Activity level Direct labor hours Variable costs Indirect labor 1 2 3 4 5 56 Indirect materials Repairs Utilities Lubricants Total variable costs Fixed costs Supervision Depreciation Insurance Rent 57 Property taxes 58 Total fixed costs 59 50 Total costs 61 62 63 b. 64 65 66 67 68 69 70 Direct labor hours Variable costs 71 Indirect labor 72 Indirect materials 73 Repairs 74 Utilities 75 Lubricants BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2022 27,000 K 30,000 33,000 36,000 U or F BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2022 Budget at 27,000 DLH Actual Costs 27,000 DLH Difference Favorable F Unfavorable U E10.3 P10.1 + Bb. 4 5 6 7 8 9 0 Direct labor hours Variable costs 1 Indirect labor 72 Indirect materials 73 Repairs 74 Utilities 75 Lubricants 76 Total variable costs 77 78 Fixed costs 79 Supervision 80 81 Depreciation Insurance 82 Rent 83 Property taxes 84 Total fixed costs 85 86 Total costs 87 88 89 C. 90 91 92 93 94 95 96 97 00 C E G BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2022 Difference Budget at 27,000 DLH Actual Costs 27,000 DLH Favorable F Unfavorable U M