Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which

  1. Flexible Overhead Budget

    Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:

    Variable overhead costs:
    Indirect factory labor $180,000
    Power and light 12,000
    Indirect materials 64,000
    Total variable overhead cost $256,000
    Fixed overhead costs:
    Supervisory salaries $ 80,000
    Depreciation of plant and equipment 50,000
    Insurance and property taxes 32,000
    Total fixed overhead cost 162,000
    Total factory overhead cost $418,000

    Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.

    Leno Manufacturing Company
    Factory Overhead Cost Budget-Press Department
    For the Month Ended November 30
    Direct labor hours 18,000 20,000 22,000
    Variable overhead costs:
    Indirect factory labor $fill in the blank 1 $fill in the blank 2 $fill in the blank 3
    Power and light fill in the blank 4 fill in the blank 5 fill in the blank 6
    Indirect materials fill in the blank 7 fill in the blank 8 fill in the blank 9
    Total variable factory overhead $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
    Fixed factory overhead costs:
    Supervisory salaries $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
    Depreciation of plant and equipment fill in the blank 16 fill in the blank 17 fill in the blank 18
    Insurance and property taxes fill in the blank 19 fill in the blank 20 fill in the blank 21
    Total fixed factory overhead $fill in the blank 22 $fill in the blank 23 $fill in the blank 24
    Total factory overhead $fill in the blank 25 $fill in the blank 26 $fill in the blank 27

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

The Audit Value Factor Making Managements Head Turn Internal Audit And IT Audit Series

Authors: Daniel Samson

1st Edition

1138198129, 978-1138198128

More Books

Students also viewed these Accounting questions