I have been attempting this problem but am having trouble understanding some of the steps, could you please help explaining this in a way that I could understand?
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2019 with the following manufacturing overhead cost budget based on 4,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (4.000 Hours] For the Month oprrii 2019 Variable costs: Factory supplies $100,000 Indirect Ia bor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities [base charge) 30,000 Total fixed warhead 464,000 Total manufacturing overhead $1,030,000 The polishing department was operated for 4,600 hours during April and incurred the following manufacturing overhead costs: Factory supplies 597,520 lndirectlabor 136,160 Utilities [usage factor} 82, 800 Utilities [base factor} 96,000 Patent royalties 280,41 5 Supervisory salaries 153,000 Depreciation on factory equipment 144,000 Factory taxes 56,000 Factory insurance 32,000 Total manufacturing overhead incurred $1,092,895 Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2019, comparing actual overhead costs with budgeted overhead costs for 4,600 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers. Taylor Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended April 30, 2019 Actual Costs Budget (4,600 hours) Variances Variable costs: Factory supplies $ $ $ Indirect labor 0 Utilities Patent royalties Total variable overhead Fixed costs: Supervisory salaries Depreciation on equipment Factory taxes Factory insurance Utilities Total fixed overhead Total overhead costs $ $ $
