Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Grouper Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as
Grouper Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials Utilities 0.70 0.40 Budgeted fixed overhead costs per month are Supervision $3,680, Depreciation $1,104, and Property Taxes $736. The company believes it will normally operate in a range of 6,440-9,200 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 920 direct labor hours. (List variable costs before fixed costs.) GROUPER COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022 Activity Level Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Utilities 6440 7360 8280 9200 SSS 6,440 S 7,360 $ 8.280 $ 9,200 $ 4,508 $ 5,152 S 5,796 S 6,440 2,576 $ 2.944 S 3,312 S 3,680 Total Variable Costs $ 13,524 $ 15,456 $ 17,388 $ 19,320 Fixed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs 5,520 $5,520 S $ 19,044 $ 20,976 $ 22.908 S 24,840 SSS $ 3,680 $3,680 $ 3,680 $ 3.680 1,104 $ 1,104 S 1,104 S 1,104 $ 736 S 736 S 736 S 736 $ 5,520 $ 5,520 (b) Prepare a flexible budget performance report, assuming that the company worked 7,820 direct labor hours during the month. (List variable costs before fixed costs.) GROUPER COMPANY Manufacturing Overhead Flexible Budget Report Dif Fa Unf Neithe Budget Actual Costs nor U 49F Actual Costs LA Difference Favorable Unfavorable Neither Favorable nor Unfavorable
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