Flexible Budget

In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce $300,000$ units of the standard model and $150,000$ units of the deluxe model during the coming year. The standard model requires $0\mathrm{.}05$ direct labor hour per unit, and the deluxe model requires $0\mathrm{.}08.$ The controller has developed the following cost formulas for each of the four overhead items:

Cost Formula

Maintenance $$34,300+$ $$1\mathrm{.}25$ DLH

Power $$0\mathrm{.}50$ DLH

Indirect labor $$68,200+$ $$2\mathrm{.}30$ DLH

Rent $$31,100$

Required:

Question Content Area

$1.$ Prepare an overhead budget for the expected activity level for the coming year.

Meliore, Inc.

Overhead Budget

For the Year Ended December $31$

Per DLH blank

Budgeted direct labor hours blank fill in the blank $6901$b$0$f$40$fccfd$9\_1$

DLH blank

Variable costs:

Maintenance $fill in the blank $6901$b$0$f$40$fccfd$9\_2$

$fill in the blank $6901$b$0$f$40$fccfd$9\_3$

Power fill in the blank $6901$b$0$f$40$fccfd$9\_4$

fill in the blank $6901$b$0$f$40$fccfd$9\_5$

Indirect labor fill in the blank $6901$b$0$f$40$fccfd$9\_6$

fill in the blank $6901$b$0$f$40$fccfd$9\_7$

Total variable costs $fill in the blank $6901$b$0$f$40$fccfd$9\_8$

Fixed costs:

Maintenance $fill in the blank $6901$b$0$f$40$fccfd$9\_9$

Indirect labor fill in the blank $6901$b$0$f$40$fccfd$9\_10$

Rent fill in the blank $6901$b$0$f$40$fccfd$9\_11$

Total fixed costs fill in the blank $6901$b$0$f$40$fccfd$9\_12$

Total overhead costs $fill in the blank $6901$b$0$f$40$fccfd$9\_13$

Question Content Area

$2.$ Prepare an overhead budget that reflects production that is $10$ percent higher than expected $($for both products$).$

Meliore, Inc.

Overhead Budget

For the Year Ended December $31$

Per DLH blank blank

Budgeted direct labor hours blank fill in the blank $0$b$8448$fd$5069$fbc$\_1$

DLH blank

Variable costs:

Maintenance $fill in the blank $0$b$8448$fd$5069$fbc$\_2$

$fill in the blank $0$b$8448$fd$5069$fbc$\_3$

Power fill in the blank $0$b$8448$fd$5069$fbc$\_4$

fill in the blank $0$b$8448$fd$5069$fbc$\_5$

Indirect labor fill in the blank $0$b$8448$fd$5069$fbc$\_6$

fill in the blank $0$b$8448$fd$5069$fbc$\_7$

Total variable costs $fill in the blank $0$b$8448$fd$5069$fbc$\_8$

Fixed costs:

Maintenance $fill in the blank $0$b$8448$fd$5069$fbc$\_9$

Indirect labor fill in the blank $0$b$8448$fd$5069$fbc$\_10$

Rent fill in the blank $0$b$8448$fd$5069$fbc$\_11$

Total fixed costs fill in the blank $0$b$8448$fd$5069$fbc$\_12$

Total overhead costs $fill in the blank $0$b$8448$fd$5069$fbc$\_13$

Question Content Area

Prepare an overhead budget for production that is $20$ percent lower than expected.

Meliore, Inc.

Overhead Budget

For the Year Ended December $31$

Per DLH blank blank

Budgeted direct labor hours blank fill in the blank $533$c$7$efb$7$fb$200$a$\_1$

DLH blank

Variable costs:

Maintenance $fill in the blank $533$c$7$efb$7$fb$200$a$\_2$

$fill in the blank $533$c$7$efb$7$fb$200$a$\_3$

Power fill in the blank $533$c$7$efb$7$fb$200$a$\_4$

fill in the blank $533$c$7$efb$7$fb$200$a$\_5$

Indirect labor fill in the blank $533$c$7$efb$7$fb$200$a$\_6$

fill in the blank $533$c$7$efb$7$fb$200$a$\_7$

Total variable costs $fill in the blank $533$c$7$efb$7$fb$200$a$\_8$

Fixed costs:

Maintenance $fill in the blank $533$c$7$efb$7$fb$200$a$\_9$

Indirect labor fill in the blank $533$c$7$efb$7$fb$200$a$\_10$

Rent fill in the blank $533$c$7$efb$7$fb$200$a$\_11$

Total fixed costs fill in the blank $533$c$7$efb$7$fb$200$a$\_12$

Total overhead costs $fill in the blank $533$c$7$efb$7$fb$200$a$\_13$