Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Novak Company estimates that 300.000 direct labor hours will be worked during the coming year 2022 in the Packaging Department. On this basis, the following

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Novak Company estimates that 300.000 direct labor hours will be worked during the coming year 2022 in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year Fixed Overhead Costs Supervision $ 96,000 Variable Overhead Costs Indirect labor $ 126,000 Depreciation 72.000 Indirect materials Repairs 90,000 69.000 Insurance 30.000 Rent 24 000 Utilities 72000 Property taxes 18.000 Lubricants 18.000 $240.000 $375,000 It is estimated that direct labor hours worked each month will range from 26,600 to 36,800 hours During October, 26.600 direct labor hours were worked, and the following overhead costs were incurred Fixed overhead costs: supervision $ 8,000.depreciation $6,000, insurance $ 2458, rent $ 2.000and property taxes $1.500 Variable overhead costs: Indirect labor $ 12,425, indirect materials $ 7,684. repairs $6,022, utilities $6.832 and lubricants $1.916 (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3.400 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.) Variable overhead costs: Indirect labor 512425. Indirect materials $7.08 repairs 36.022, 56312 and oricants $1.916 (a) Prepare a monthly manufacturing overhead fodble budget for each increment of 3.400 direct labor hours over the relevantrance for the year ending December 31, 2022. (List variable costs before fed costs NOVAK COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2022 Activity level Direct Labor Hours ! Variable costs Indirector [ Indirect Materials Nepairs DOROTE Utilities Lubricants es LILL OIL JUDO JULIE here ind cost (b) Prepare a flexible budget report for October (List variable costs before fund costs) NOVAK COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Year Ended October 31 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs Budget Hour IN INE TE overable Uw DA . Unte Costs Uvoile Neither Nether Na Fave Neither Farbe Unevole e Textbook and Media Attempts tofused Submw

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Peter Clarke

2nd Edition

9781907214240

More Books

Students also viewed these Accounting questions