Question text

Jenner Company developed its annual manufacturing overhead budget for its master budget for 2018 as follows:

Expected Annual operating capacity 120,000 Direct labor hours

Expected Annual Budgeted Costs at 120,000 Direct Labor Hours:

Variable Costs:
Indirect Labor	$420,000
Indirect Materials	90,000
Factory Supplies	30,000
Total Variable Costs	$540,000
Fixed Costs:
Depreciation	$180,000
Supervision	120,000
Property Taxes	96,000
Total Fixed Costs	$396,000
Total Costs	$936,000

Instructions

Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours.

Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours. Enter the proper amounts for the items at the 8,000 and 9,000 levels of activity in the template below:

Jenner Company

Flexible Monthly MOH Budget

Activity Level	8,000	9,000
Variable Costs:
Indirect Labor
Indirect Materials
Factory Supplies
Total Variable Costs
Fixed Costs:
Depreciation
Supervision
Property Taxes
Total Fixed Costs
Total Costs