Question
E10-3 Prepare flexible manufacturing overhead budget Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per
E10-3 Prepare flexible manufacturing overhead budget
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
| Indirect labor | $1.00 | |
| Indirect materials | 0.70 | |
| Utilities | 0.40 | |
Fixed overhead costs per month are supervision $4,000, depreciation, $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000 - 10,000 direct labor hours per month.
Instructions
Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2017
| Activity level | ||||||||||
| Direct labor hours | 7,000 | 8,000 | 9,000 | 10,000 | ||||||
| Variable costs | ||||||||||
| Indirect labor ($1.00) | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | ||||||
| Indirect materials ($0.70) | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...$7,000 5,6006,300$10,000 $8,000 $9,000 4,900 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | ||||||
| Utilities ($0.40) | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | ||||||
| Total variable cost ($2.10) | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | Choose...3,20016,80021,00014,7002,80018,9004,0003,6007,000 | ||||||
| Fixed costs | ||||||||||
| Supervision | Choose...8004,000 $20,7006,0001,200 | Choose...6,0008004,000 1,200 $22,800 | Choose...8006,000$24,900 4,000 1,200 | Choose...8006,0004,000 1,200 $27,000 | ||||||
| Depreciation | Choose...8004,000 $20,7006,0001,200 | Choose...6,0008004,000 1,200 $22,800 | Choose...8006,000$24,900 4,000 1,200 | Choose...8006,0004,000 1,200 $27,000 | ||||||
| Property taxes | Choose...8004,000 $20,7006,0001,200 | Choose...6,0008004,000 1,200 $22,800 | Choose...8006,000$24,900 4,000 1,200 | Choose...8006,0004,000 1,200 $27,000 | ||||||
| Total fixed costs | Choose...8004,000 $20,7006,0001,200 | Choose...6,0008004,000 1,200 $22,800 | Choose...8006,000$24,900 4,000 1,200 | Choose...8006,0004,000 1,200 $27,000 | ||||||
| Total costs | Choose...8004,000 $20,7006,0001,200 | Choose...6,0008004,000 1,200 $22,800 | Choose...8006,000$24,900 4,000 1,200 | Choose...8006,0004,000 1,200 $27,000 | ||||||
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Advanced Financial Accounting Lawrence S C Good Condition ISBN 08512
Authors: S.C. Lawrence
1st Edition
9780851215099
