Question
Flexible Overhead Budget Please Show me the work so I can study this question for my exam Carson Wood Products Company prepared the following factory
Flexible Overhead Budget
Please Show me the work so I can study this question for my exam
Carson Wood Products Company prepared the following factory overhead cost budget for the Press Department for April 2014, during which it expected to require 8,000 hours of productive capacity in the department:
Variable overhead cost: | ||
Indirect factory labor | $64,800 | |
Power and light | 3,760 | |
Indirect materials | 20,800 | |
Total variable cost | $89,360 | |
Fixed overhead cost: | ||
Supervisory salaries | $31,280 | |
Depreciation of plant and equipment | 19,660 | |
Insurance and property taxes | 12,510 | |
Total fixed cost | 63,450 | |
Total factory overhead cost | $152,810 |
Assuming that the estimated costs for May are the same as for April, prepare a flexible factory overhead cost budget for the Press Department for May for 6,000, 8,000, and 10,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started