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Problem 22-1A Bumblebee Company estimates that 378,500 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis,
Problem 22-1A Bumblebee Company estimates that 378,500 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year Fixed overhead Costs Variable Overhead Costs $87,840 Indirect labor 68,760 Indirect materials Supervision Insurance Rent Property taxes 0,000 Repairs 24,360 Utilities 18,480 Lubricants 83,270 7,850 75,700 30,280 $393,640 It is estimated that direct labor hours worked each month will range from 25,800 to 36,600 hours. During October, 25,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,320, Depreciation $5,730, Insurance $2,460, Rent $2,030, and Property taxes $1,540 Variable overhead costs: Indirect labor $12,352, Indirect materials, $5,336, Repairs $2,510, Utilities $5,460, and Lubricants $2,304
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