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Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 12,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $86,400 4,320 Power and light Indirect materials 34,800 $125,520 Total variable overhead cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment $43,930 27,610 17,570 Insurance and property taxes Total fixed overhead cost 89,110 Total factory overhead cost $214,630 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 10,000, 12,000, and 14,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 10,000 12,000 Variable overhead cost: Indirect factory labor 14,000 Power and light Indirect materials Total variable factory overhead Fixed factory overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead Total factory overhead cost
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