Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oriole, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor

Oriole, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:

Indirect labor $5.00
Indirect materials 2.50
Maintenance 0.50
Utilities 0.30
Fixed overhead costs per month are:
Supervision $1,250
Insurance 450
Property taxes 650
Depreciation 1,850

The company believes it will normally operate in a range of 4,500 to 8,500 machine hours per month. During the month of August, 2022, the company incurs the following manufacturing overhead costs:

Indirect labor $30,550
Indirect materials 17,550
Maintenance 3,030
Utilities 2,060
Supervision 1,540
Insurance 450
Property taxes 650
Depreciation 1,960

Prepare a flexible budget report, assuming that the company used 6,500 machine hours during August. (List variable costs before fixed costs.)

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

Forensic Accounting And Fraud Examination

Authors: Mary Jo Kranacher, Richard Riley

2nd Edition

1119494338, 9781119494331

More Books

Students also viewed these Accounting questions