Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pronghorn Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system

image text in transcribed

Pronghorn Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours. Variable costs Rate per Direct Labor Hour Annual Fixed Costs Indirect labor $0.42 Supervision $42,600 Indirect materials 0.50 Depreciation 17,280 Factory utilities 0.33 Insurance 14,640 Factory repairs 0.23 Rent 30,600 The master overhead budget was prepared in the expectation that 481,600 direct labor hours will be worked during the year. In June, 38,400 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.46, indirect materials $0.48, factory utilities $0.37, and factory repairs $0.28. Fixed: same as budgeted. (a) & (b) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 35,100 to 49,800 direct labor hours. Use increments of 4,900 direct labor hours. (List variable costs before fixed costs.) PRONGHORN COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 +A +A +A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comparative international accounting

Authors: Christopher nobes, Robert parker

9th Edition

273703579, 978-0273703570

More Books

Students also viewed these Accounting questions

Question

What three factors determine cash flows?

Answered: 1 week ago

Question

What are the two items whose sum is the price of equity capital?

Answered: 1 week ago