q4: Crane Company prepared a fixed budget of 40000 direct labor hours, with estimated overhead costs of $200000 for variable overhead and $90000 for fixed
q4: Crane Company prepared a fixed budget of 40000 direct labor hours, with estimated overhead costs of $200000 for variable overhead and $90000 for fixed overhead. Crane then prepared a flexible budget at 32000 labor hours. How much is total overhead costs at this level of activity?
q5: The master budget of Sunland Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor | $760000 |
Machine supplies | 210000 |
Indirect materials | 210000 |
Depreciation on factory building | 150000 |
Total manufacturing overhead | $1330000 |
A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
q6:At 11000 direct labor hours, the flexible budget for indirect materials is $22000. If $24400 are incurred at 11400 direct labor hours, the flexible budget report should show the following difference for indirect materials: