Problem 23-01A a-b

Bumblebee Company estimates that 322,300 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs				Variable Overhead Costs
Supervision		$85,680		Indirect labor		$128,920
Depreciation		74,280		Indirect materials		83,798
Insurance		24,600		Repairs		45,122
Rent		18,120		Utilities		48,345
Property taxes		19,320		Lubricants		16,115
		$222,000				$322,300

It is estimated that direct labor hours worked each month will range from 29,500 to 37,600 hours. During October, 29,500 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,140, Depreciation $6,190, Insurance $2,025, Rent $1,510, and Property taxes $1,610. Variable overhead costs: Indirect labor $12,880, Indirect materials, $7,220, Repairs $4,070, Utilities $4,705, and Lubricants $1,725. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Month Manufacturing Overhead Flexible Budget Assignment page the Year 2020