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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

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 4,500 hours during April and incurred the following manufacturing overhead costs:

Factory supplies $97,470
Indirect labor 136,110
Utilities (usage factor) 82,800
Utilities (base factor) 96,000
Patent royalties 280,366
Supervisory salaries 167,000
Depreciation on factory equipment 144,000
Factory taxes 55,000
Factory insurance 32,000
Total manufacturing overhead incurred $1,090,746

Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,500 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between 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 (4,500 hours) Variances
Variable costs:
Factory supplies Answer Answer Answer AnswerFU
Indirect labor Answer Answer Answer AnswerFU
Utilities Answer Answer Answer AnswerFU
Patent royalties Answer Answer Answer AnswerFU
Total variable overhead Answer Answer Answer AnswerFU
Fixed costs:
Supervisory salaries Answer Answer Answer AnswerFU
Depreciation on equipment Answer Answer Answer
Factory taxes Answer Answer Answer AnswerFU
Factory insurance Answer Answer Answer
Utilities Answer Answer Answer AnswerFU
Total fixed overhead Answer Answer Answer AnswerFU
Total overhead costs Answer Answer Answer AnswerFU

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