Question
Myers company uses a flexible budget for manufactoring overhead based on direct labor hours.Variable manufactoring overhead costs per direct labor hour as follows. Indirect labor
Myers company uses a flexible budget for manufactoring overhead based on direct labor hours.Variable manufactoring overhead costs per direct labor hour as follows. Indirect labor $1.20 Indirect materials .70 Utilities .20 Fixed overhead costs per month are supervision $4300, Depreciation $2000, and property taxes $700. The company believes it will normally operate in a range of $8100 -12000 direct labor hours per month. Prepare a monthly manufactoring overhead flexible budget for 2017 for the expected range of activity, using increments of 1300 direct labor hours manufactoring overhead flexible budget for 2017 Activity level Direct labor hours _______ ________ ________ ________ Variable costs Indirect labor _______ ________ _______ _______ Indirect materials ________ ______ _____ ______ Utilities _____ ____ _____ _____ total variable costs _____ _____ _____ _____ Fixed costs Depreciation _____ _____ _____ _____ Propety taxes _____ ______ ____ ______ Supervision ____ ____ ____ ____ Total fixed costs ____ ____ ____ ____ Total costs ___ _____ ____ ____
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