Problem 24-1A Your answer is partially correct. Try again. Bumblebee Company estimates that 337,700 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 $88,200 Indirect $155,342 labor Depreciation 72,000 Indirect Insurance Rent Property taxes 74,294 67,540 67,540 16,88S $381,601 materials 29,760 Repairs 24,360 Utilities 13,080 Lubricants $227,400 It is estimated that direct labor hours worked each month will range from 21,500 to 29,600 hours. During October, 21,500 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,350, Depreciation $6,000, Insurance $2,450, Rent $2,030, and Property taxes $1,090. Variable overhead costs: Indirect labor $10,920, Indirect materials, $4,320, Repairs $4,240, Utilitiles $4,630, and Lubricants $1,365 (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, 2017. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity Level Direct Labor Hours Variable Costs Indirect Labor 21500 24200 26900 29600 11132 12374 13616 Indirect Materials RepairS Utilities Lubricants 4730 4300 4300 1075 5324 4840 4840 1210 5918 5380 5380 1345 30397 6512 5920 5920 1480 Total Variable Costs Fixed Costs Supervision 24295 27346 33448 7350 7350 7350 7350 6000 2450 2030 1090 18920 6000 2450 2030 1090 18920 6000 2450 2030 1090 18920 6000 2450 2030 1090 18920 Depreciation Insurance Rent Property Taxes Total Fixed Costs Total Costs 43215 46266 49317 52368 BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 21500 21500 Direct Labor Hours Variable Costs Indirect Labor 9890 4730 4300 4300 1075 (1030) Unfavorable 410 Favorable 60 Favorable (330) Unfavorable (290) Unfavorable (1180) Unfavorable 10920 Indirect Materials 4320 4240 4630 1365 RepairS Utilities Lubricants Total Variable Costs Fixed Costs Supervision 24295 25475 0 Neither Favorable nor Unfavorable 7350 6000 2480 2030 1090 7350 6000 2450 0 Neither Favorable nor Unfavorable Depreciation Insurance Rent 30 Favorable 2030 0 Neither Favorable nor Unfavorable Property Taxes 1090 0 Neither Favorable nor Unfavorable Total Fixed Costs 18950 18920 30 Favorable Total Costs 43245 44395 (1150) Neither Favorable nor Unfavorable