Hass Company estimates that 360,000 direct labor hours will be worked during the coming year, 2011, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs _____________________ Supervision $90,000 Depreciation 60,000 Insurance 30,000 Rent 24,000 Property Taxes 18,000 _____________________ $ 222,000 Variable Overhead Costs _____________________ Indirect Labor ------$126,000 Indirect Materials-----90,000 Repairs --------------- 54,000 Utilities -------------- 72,000 Lubricants------------ 18,000 _____________________ $360,000 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours. During October 27,000 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $5,000, Insurance $2,470, Rent $2,000, and Property taxes $1,500. Variable overhead costs: Indirect labor $10,360, Indirect materials, $6,400, Repairs $4,000, Utilities $5,700, and Lubricants $1,640. Prepare a monthly flexible manufacturing overhead budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2011. HAAS Company Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2011 Activity Level Direct Labor Hours ________ _______ ________ ________ Variable Costs Indirect Labor ______ ______ _______ ________ Indirect Materials ______ _______ _______ _______ Repairs _______ ________ _______ _______ Utilities _______ ________ _______ _______ Lubricants ________ ________ _______ _______ --------------------------------------------------------------------------------------------- Tot. Variable Costs ________ _______ _______ ________ Fixed Costs Supervision ______ _______ ________ ________ Depreciation ______ _______ _________ ________ Insurance ______ _______ __________ _________ Rent ______ ________ __________ __________ Property Taxes_______ _________ _________ ___________ --------------------------------------------------------------------------------------------- Tot. Fixed Costs ________ _________ ___________ ___________ ------------------------------------------------------------------------------------------------------- Total Costs _________ __________ __________ ____________ Prepare a flexible budget for October HAAS Company Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2011 Budget----- Actual Costs---------Difference Direct Labor Hours (DLH) ________ __________ Variable Costs Indirect Labor _______ _________ __________ Indirect Materials ________ _________ __________ Repairs ________ __________ __________ Utilities _________ __________ __________ Lubricants _________ __________ __________ ------------------------------------------------------------------------------------------ Tot. Variable Costs _________ ___________ __________ ------------------------------------------------------------------------------------------ Fixed Costs Supervision _________ ___________ ___________ Depreciation _________ ___________ ___________ Insurance _________ ___________ ___________ Rent __________ ___________ ___________ Property Taxes __________ _________ ____________ -------------------------------------------------------------------------------------------- Tot. Fixed Costs ___________ ___________ ___________ -------------------------------------------------------------------------------------------- Total Costs ____________ _____________ __________