Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER THE QUESTIONS BELOW Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of

PLEASE ANSWER THE QUESTIONS BELOW

image text in transcribedimage text in transcribedimage text in transcribed

Flexible Overhead Budget 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 15,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor Power and light $136,500 5,850 45,000 Indirect materials Total variable overhead cost $187,350 Fixed overhead costs: Supervisory salaries $65,570 Depreciation of plant and equipment 41,220 Insurance and property taxes 26,230 Total fixed overhead cost 133,020 Total factory overhead cost $320,370 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 13,000, 15,000, and 17,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. 17,000 Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 13,000 15,000 Variable overhead costs: Indirect factory labor Power and light Indirect materials $ Total variable factory overhead Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $ $ Total fixed factory overhead $ $ Total factory overhead Flexible Overhead Budget Wiki Wiki Company has determined that the variable overhead rate is $4.1 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 15,000 hours for the month. Fixed costs are budgeted at $99,000 for the month. a. Prepare a monthly factory overhead flexible budget for 14,200, 15,000, and 15,800 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 14,200 15,000 15,800 Variable factory overhead cost $ Fixed factory overhead cost Total factory overhead cost $ b. How much overhead would be applied to production if 15,800 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar. $

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_2

Step: 3

blur-text-image_3

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

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond

7th Edition

0730369323, 9780730369325

More Books

Students also viewed these Accounting questions