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Bumblebee Company estimates that 402,600 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted
Bumblebee Company estimates that 402,600 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 $89,280 Indirect labor $169,092 80,520 40,260 60,390 40,260 $390,522 73,440 Indirect materials 26,040 Repairs Insurance Rent Property taxes 1,360tilities 22,440 Lubricants $232,560 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During october, 22,800 direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs: Supervision7,440, Depreciation $6,120, insurance $2,125, Rent $1,780, and Property taxes s 1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640
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