P24-1 B Speier Company estimates that 240,000 direct labor hours will be worked during 2017 in the Assembly Department. On this basis, the following budgeted manufacturing overhead data are computed. Variable Overhead Costs Fixed Overhead Costs Indirect labor $72,000 Supervision $ 75,600 Indirect materials 48,000 Depreciation 30.000 Repairs 36,000 Insurance 12,000 Utilities 24.000 Rent Lubricants 12,000 Property taxes 6.000 $192,000 $133,200 9,600 It is estimated that direct labor hours worked each month will range from 18,000 to 24,000 hours. During Jan. 20,000 direct labor hours were worked and these overhead costs were incurred. Variable Overhead Costs Fixed Overhead Costs Indirect labor $ 6,200 Supervision $ 6,300 Indirect materials 3,600 Depreciation 2,500 Repairs 2.300 Insurance 1.000 Utilities 1,700 Rent 850 Lubricants 1,050 Property taxes $14,850 $ 11.150 500 Instructions (a) Prepare a monthly flexible manufacturing overhead budget for each increment of 2,000 direct labor hours over the relevant range for the year ending December 31, 2017. (b) Prepare a manufacturing overhead budget report for January (e) Comment on management's efficiency in controlling manufacturing over head costs in January PROBLEM 24-1B (a) SPEIER COMPANY Flexible Monthly Manufacturing Overhead Budget Assembly Department For the Year 2017 Activity Level Direct Labor Hours 18,000 20,000 22,000 24,000 Variable Costs: Total Variable Costs Fixed Costs: Supervision Depreciation Insurance Rent Property Taxes Total Fixed Costs Total Costs PROBLEM 24-1B (b) SPEIER COMPANY Manufacturing Overhead Budget Report (Flexible) Assembly Department For the Month Ended January 31, 2017 Activity Level Budget at Direct Labor Hours 20,000 DLH Variable Costs: Actual Costs Favorable 20,000 DLH Unfavorable Total Variable Costs Fixed Costs: Supervision Depreciation Insurance Rent Property Taxes Total Fixed Costs Total Costs