Question 6
a Pina Colada Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. $1.00 Indirect labor Indirect materials Utilities 0.70 0.40 Budgeted fixed overhead costs per month are Supervision $4.080. Depreciation $1,224, and Property Taxes $816. The company believes it will normally operate in a range of 7.140-10.200 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,020 direct labor hours. (List variable costs before fixed costs.) PINA COLADA COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022 Activity Level Direct Labor Hours 8540 9760 10980 Variable Costs Indirect Labor 8540 9760 $ 10980 1 00 Indirect Materials 5978 6832 7686 Utilities 3416 3904 4392 Total Variable Costs 17934 PONO TO 20496 23058 Fixed Costs Supervision 4880 4880 4880 Depreciation 1464 1464 1464 Property Taxes 976 976 976 Total Fixed Costs 7320 7320 7320 Total Costs 25254 $ 27816 A 30378 Pina Colada Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. $1.00 Indirect labor Indirect materials Utilities 0.70 0.40 Budgeted fixed overhead costs per month are Supervision $4.080. Depreciation $1,224, and Property Taxes $816. The company believes it will normally operate in a range of 7.140-10,200 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,020 direct labor hours. (List variable costs before fixed costs.) PINA COLADA COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022 8540 9760 10980 12200 8540 A 9760 10980 $ 12200 5978 6832 7686 8540 3416 3904 4392 4880 17934 20496 23058 25620 i noen meni bolood blogi dood, dood 4880 4880 4880 4880 1464 1464 1464 1464 976 976 7320 7320 7320 7320 25254 27816 30378 $ 32940
