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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 14,000 hours of productive capacity in the department:

    Variable overhead cost:
    Indirect factory labor $133,000
    Power and light 6,440
    Indirect materials 30,800
    Total variable overhead cost $170,240
    Fixed overhead cost:
    Supervisory salaries $59,580
    Depreciation of plant and equipment 37,450
    Insurance and property taxes 23,830
    Total fixed overhead cost 120,860
    Total factory overhead cost $291,100

    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 12,000, 14,000, and 16,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

    Leno Manufacturing Company
    Factory Overhead Cost Budget-Press Department
    For the Month Ended November 30
    Direct labor hours 12,000 14,000 16,000
    Variable overhead cost:
    Indirect factory labor $ $ $
    Power and light
    Indirect materials
    Total variable factory overhead $ $ $
    Fixed factory overhead cost:
    Supervisory salaries $ $ $
    Depreciation of plant and equipment
    Insurance and property taxes
    Total fixed factory overhead $ $ $
    Total factory overhead cost $ $ $

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