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Johnny Lee Incorporated produces a line of small gasoline powered engines that can be used in a variety of residential machines, ranging from different types

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Johnny Lee Incorporated produces a line of small gasoline powered engines that can be used in a variety of residential machines, ranging from different types of lawnmowers, to snowblowers, to garden tools (such as tillers and weed-whackers). The basic product line consists of three different models, each meant to fill the needs of a different market Assume you are the cost accountant for this company and that you have been asked by the owner of the company to construct a flexible budget for factory overhead costs, which seem to be growing faster than revenues Currently, the company uses machine hours (MHS) as the basis for assigning both variable and fixed factory overhead costs to products Within the relevant range of output, you determine that the following factory fixed overhead costs per month should occur engineering support, $15.100 insurance on the manufacturing facility, $5100, property taxes on the manufacturing facility 512100, depreciation on manufacturing equipment, $13,900 and indirect labor costs of supervisory salaries $14.900, setup labor, $2,500 and materials handling. $2,600 Variable factory overhead costs are budgeted at $2600 per machine hour, as follows electricity. $900, indirect materials for Material of $2.00 and for Material B of $500 indirect labor--maintenance, $700, and production-related supplies, $3.00 Required: 1. Prepare a flexible budget for Johnny Lee for each of the following monthly levels of machine hours: (a) 4.100. (b) 5,100, and (c) 6.100, 2. Generate an equation to represent within the relevant range, the factory overhead costs per month for Johnny Lee Use this equation to estimate monthly total overhead cost for machine hours of 3,100 10 6100, in increments of 500 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for Johnny Lee for each of the following monthly levels of machine hours: (a) 4,100, (b) 5,100, and (c) 6,100 Machine Hours 4,100 5,100 3,100 Badgoed vanable overhead Electricity Indirect manals A Indirect matonals B Indeed labor maintenance Production related supplies 5 os os 0 Total vanable overbond Budgeted faxed overhead Engineering Support Insurance-manufacturing facility Property tres-manufacturing facility Depreciation--manufacturing to Materials handing Indred labor Indirect labor maintenance $ Total food overhead Total manufacturing overhead Os 0 $ 0 05 $ 0

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