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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 14,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $120,400 Power and light 3,920 Indirect materials 46,200 Total variable overhead cost $170,520 Fixed overhead cost: Supervisory salaries $59,680 Depreciation of plant and equipment 37,510 Insurance and property taxes 23,870 Total fixed overhead cost 121,060 Total factory overhead cost $291,580 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 12,000, 14,000, and 16,000 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 12,000 14,000 16,000 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable factory overhead Fixed factory overhead cost: Supervisory salaries pu) Dop, $ Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead Total factory overhead cost
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