Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours

image text in transcribedimage text in transcribedimage text in transcribed
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities (base charge) 80,000 Total fixed overhead 464,000 Total manufacturing overhead $1,080,000 The polishing department was operated for 4,400 hours during April and incurred the following manufacturing overhead costs: Factory supplies $97,670 Indirect labor 132,310 Utilities (usage factor) 82,800 Utilities (base factor) 96,000 Patent royalties 280,566 Supervisory salaries 171,000 Depreciation on factory equipment 144,000 Factory taxes 59,000 Factory insurance 32,000 Total manufacturing overhead incurred $1,095,346 Using a flexible budgeting approach, prepare a performance report for the polishing department for April 201 6, comparing actual overhead costs with budgeted overhead costs for 4,400 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances betweei actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers. Taylor Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended April 30, 2016 Actual Costs Budget (4,400 hours) Variances Variable costs: Factory supplies $ $ 3; Indirect labor Utilities Patent royalties 4} 4} 4} 4} 4} Total variable overhead Fixed costs: 4} Supervisory salaries Depreciation on equipment 4} Factory taxes Factory insurance Utilities Total fixed overhead 4} 4} 4} Total overhead costs $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Computer Accounting With Quickbooks Online

Authors: Donna Kay

2nd Edition

1264152272, 9781264152278

More Books

Students also viewed these Accounting questions

Question

Would you recommend this program to your employer? Why?

Answered: 1 week ago