QUESTION 16 Answer saved Marked out of 46.00 P Flag question Flexible Budget Application The cutting department of Liberty Manufacturing Company operated during September 2016 with the following manufacturing overhead cost budget based on 6,000 hours of monthly productive capacity: Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 Variable costs Factory supplies Indirect labor Utilities (usage charge) Patent royalties on secret process $48,000 72,000 36,000 144,000 Total variable overhead $300,000 Fixed costs Supervisory salaries Depreciation on factory equipment Factory taxes Factory insurance Utilities (base charge) 96,000 140,000 40,000 24,000 32,000 Total fixed overhead 332,000 Total manufacturing overhead $632,000 Utilities (base charge) 32,000 Total fixed overhead 332,000 Total manufacturing overhead $632,000 The cutting department was operated for 5,700 hours during September and incurred the following manufacturing overhead costs: Factory supplies Indirect labor Utilities (usage factor) Utilities (base factor) Patent royalties Supervisory salaries Depreciation on factory equipment Factory taxes Factory insurance Total manufacturing overhead incurred $40,600 9,400 38,100 32,000 139,200 96,000 140,000 43,600 27,000 Using a flexible budgeting approach, prepare a performance report for the cutting department for September 2016, comparing actual overhead costs with budgeted overhead costs for 5,700 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers answers. Liberty Manufacturing Company Polishing Department Performance Report- Manufacturing Overhead For the Month Ended September 30, 2016 BudgetVariances Actual Costs(5,700 hours) Variable costs: Factory supplies S 40,600 59,400 38,100 Indirect labor 0 Utilities Patent royalties 139.200 Total variable overhead 287,300 Fixed costs: Supervisory salaries Depreciation on equipment Factory taxes Factory insurance 96,000 96,000 140,000 140,000 43,600 40,000 o U 27,000 24,000 32,000 32,000 O U Total fixed overhead 338,600 332,000 625,900 s Total overhead costs Save Answers Previous page Next page