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Swifty Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are
Swifty 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. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Budgeted fixed overhead costs per month are Supervision $4,880, Depreciation $1,464, and property Taxes $976. The company believes it will normally operate in a range of 8,540-12,200 direct labor hours per month. Assume that in July 2022, Swifty Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $10,736 Supervision $4,880 Indirect materials 7,076 Depreciation 1,464 Utilities 3,904 Property taxes 976
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