Fixed Overhead Costs Variable Overhead Costs

Supervision $$105,600$ Indirect labor $$138,600$

Depreciation $79,200$ Indirect materials $99,000$

Insurance $33,000$ Repairs $75,900$

Rent $26,400$ Utilities $79,200$

Property taxes $19,800$ Lubricants $19,800$

$$264,000$ $$412,500$

$/10$

Question $1$ of $3$

Sheffield Company estimates that $330,000$ direct labor hours will be worked during the coming year, $2025,$ in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

It is estimated that direct labor hours worked each month will range from $29,100$ to $40,800$ hours.

During October, $29,100$ direct labor hours were worked, and the following overhead costs were incurred.

Fixed overhead costs: supervision $$8,800,$ depreciation $$6,600,$ insurance $$2,703,$ rent $$2,200,$ and property taxes $$1,650.$

Variable overhead costs: indirect labor $$13,665,$ indirect materials $$8,454,$ repairs $$6,572,$ utilities $$7,512,$ and lubricants $$2,106.$

$($a$)$ Prepare a monthly manufacturing overhead flexible budget for each increment of $3,900$ direct labor hours over the relevant range for the year ending December $31,2025.($List variable costs before fixed costs.$)$

SHEFFIELD COMPANY

Packaging Department

Monthly Manufacturing Overhead Flexible Budget

For the Year $2025$

B$)$Prepare a flexible budget report for October $($list variable costs before fixed costs$)$