24 1A Bumblebee Company estimates that385,800direct labor hours will be worked during the coming year, 2017, in the Packaging Department On this basis, the budgeted manufacturing overhead cost data are computed for the year Fixed Overhead Costs Variable Overhead Costs Supervision $91,080 Indirect labor $185,184 Depreciation 74,520 Indirect materials 100,308 Insurance 24,840 Repairs 61,728 Rent 22,560 Utilities 57,870 Property taxes 17,880 Lubricants 30,864 $230,880 $435,954 It is estimated that direct labor hours worked each month will range from28,700to39,200hours During October,28,700direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1,490 Variable overhead costs Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2,596 (a)Prepare a monthly manufacturing overhead flexible budget for each increment of3,500direct labor hours over the relevant range for the year ending December 31, 2017 (List variable costs before fixed costs ) BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs $ $ $ $ Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs $ $ $ $ (b)Prepare a flexible budget report for October (List variable costs before fixed costs ) BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs $ $ $ FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FavorableUnfavorableNeither Favorable nor Unfavorable Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs $ $ $ FavorableUnfavorableNeither Favorable nor Unfavorable

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 14, 2024

24-1A Bumblebee Company estimates that385,800direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing

24-1A

Bumblebee Company estimates that385,800direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs	Variable Overhead Costs
Supervision	$91,080	Indirect labor	$185,184
Depreciation	74,520	Indirect materials	100,308
Insurance	24,840	Repairs	61,728
Rent	22,560	Utilities	57,870
Property taxes	17,880	Lubricants	30,864
$230,880	$435,954

It is estimated that direct labor hours worked each month will range from28,700to39,200hours.

During October,28,700direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1,490.

Variable overhead costs: Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2,596.

(a)Prepare a monthly manufacturing overhead flexible budget for each increment of3,500direct labor hours over the relevant range for the year ending December 31, 2017.(List variable costs before fixed costs.)

BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	$
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	$

(b)Prepare a flexible budget report for October.(List variable costs before fixed costs.)

BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017
Difference
Budget	Actual Costs	Favorable Unfavorable Neither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FavorableUnfavorableNeither Favorable nor Unfavorable
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	FavorableUnfavorableNeither Favorable nor Unfavorable