Problem 10-1A (Part Level Submission)

Cook Company estimates that 363,400 direct labor hours will be worked during the coming year, 2014, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs				Variable Overhead Costs
Supervision		$89,760		Indirect labor		$159,896
Depreciation		72,240		Indirect materials		87,216
Insurance		34,800		Repairs		36,340
Rent		29,880		Utilities		69,046
Property taxes		13,320		Lubricants		25,438
		$240,000				$377,936

It is estimated that direct labor hours worked each month will range from 22,400 to 29,300 hours. During October, 22,400 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,480, Depreciation $6,020, Insurance $2,853, Rent $2,490, and Property taxes $1,110. Variable overhead costs: Indirect labor $10,939, Indirect materials, $4,986, Repairs $2,197, Utilities $4,603, and Lubricants $1,893.

Prepare a monthly manufacturing overhead flexible budget for each increment of 2,300 direct labor hours over the relevant range for the year ending December 31, 2014.

Activity Level

Direct Labor Hours 22,400 24,700 27,000 29,300

Varible Costs

Indirect Labor ? ? ? ?

Indirect Materials ? ? ? ?

Repairs ? ? ? ?

Utilities ? ? ? ?

Lubricants ? ? ? ?

Total Variable Costs