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Question 1 Bumblebee Company estimates that 385,800 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis,
Question 1 Bumblebee Company estimates that 385,800 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 $185,184 100,308 61,728 57,870 30,864 $435,954 Supervision S91,080 Indirect labor Insurance Rent Property taxes 74,520 Indirect materials 24,840 Repairs 22,560 Utlities 17,880 Lubricants $230,880 It is estimated that direct lahor hours worked each month wll range from 28,700 to 39,200 hours. During October, 28,700 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,590, Deprediation $6,210, Insurance $2,015, Rent 51,880, and Property taxes s1,490 Vanable overhead costs: Indirect labor $14,755, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubncants s2,596
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