Question
At the beginning for the year 2020, Shanghai Healthy Food Production Company budgeted its cost at 4 different capacity levels as follows: Manufacturing Overheads Capacity
At the beginning for the year 2020, Shanghai Healthy Food Production Company budgeted its cost at 4 different capacity levels as follows:
Manufacturing Overheads | Capacity Level/Usage (in mh) | |||
10,000 | 12,000 | 15,000 | 20,000 | |
Indirect Materials | 30,000 | 36,000 | 45,000 | 60,000 |
Depreciation | 15,000 | 15,000 | 15,000 | 15,000 |
Supervision | 23,000 | 27,000 | 33,000 | 43,000 |
Energy | 48,000 | 56,000 | 68,000 | 88,000 |
TOTAL | 116,000 | 134,000 | 161,000 | 206,000 |
A) What is the flexible budget formula for the year 2020?
B) What is the Predetermined MOH Rate (Applied MOH Rate) if the budgeted capacity is set at 18,000 mh?
Step by Step Solution
3.51 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
Answer to Part A The flexible budget formula for 2020 can be derived by analyzing the cost nature Va...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
