Problem 24-1A

Bumblebee Company estimates that 387,400 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

Supervision

$86,640

Indirect labor

$154,960

Depreciation

72,720

Indirect materials

85,228

Insurance

28,320

Repairs

69,732

Rent

26,280

Utilities

58,110

Property taxes

22,080

Lubricants

34,866

$236,040

$402,896

It is estimated that direct labor hours worked each month will range from 24,300 to 34,200 hours.

During October, 24,300 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,220, Depreciation $6,060, Insurance $2,320, Rent $2,190, and Property taxes $1,840.

Variable overhead costs: Indirect labor $10,790, Indirect materials, $4,846, Repairs $4,304, Utilities $4,025, and Lubricants $2,457.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,300 direct labor hours over the relevant range for the year ending

(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.