Bumblebee Company estimates that 388,800 direct 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.

Problem 22-1A Bumblebee Company estimates that 388,800 direct 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 Depreciation Insurance Rent Property taxes $92,640 67,200 25,920 23,160 21,240 $230,160 Indirect labor Indirect materials Repairs Utilities Lubricants $178,848 108,864 62,208 58,320 27,216 $435,456 It is estimated that direct labor hours worked each month will range from 27,600 to 35,700 hours. During October, 27,600 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,720, Depreciation $5,600, Insurance $2,135, Rent $1,930, and Property taxes $1,770. Variable overhead costs: Indirect labor $13,696, Indirect materials, $7,328, Repairs $4,376, Utilities $4,550, and Lubricants $2,272. It is estimated that direct labor hours worked each month will range from 27,600 to 35,700 hours. During October, 27,600 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,720, Depreciation $5,600, Insurance $2,135, Rent $1,930, and Property taxes $1,770. Variable overhead costs: Indirect labor $13,696, Indirect materials, $7,328, Repairs $4,376, Utilities $4,550, and Lubricants $2,272. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct 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 (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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Click if you would like to Show Work for this question: Open Show Work