The accountant for Bright Products, Inc., has analyzed the manufacturing overhead costs for the company$$s assembly department. The fixed and variable costs follow:

Variable Cost Element per Hour Monthly Fixed

Cost Element

Indirect labor $ $1\mathrm{.}80$ $ $1,720$

Payroll taxes $0\mathrm{.}17180$

Indirect materials $0\mathrm{.}23180$

Utilities $0\mathrm{.}32280$

Depreciation $-1,120$

Taxes and insurance $-420$

Maintenance $0\mathrm{.}17280$

Required:

Prepare a flexible budget for the department for the month of May $20$X$1,$ assuming that the expected production is for $1,700$ direct labor hours. Show costs for production levels of $90$ percent and $110$ percent of the expected production level of $1,700$ hours.

Assume that during the month of May, actual production was $1,100$ hours. Actual costs for the month were as follows:

Indirect labor $ $3,658$

Payroll taxes $175$

Indirect materials $456$

Utilities $664$

Depreciation $1,120$

Taxes and insurance $403$

Maintenance $450$

Prepare a departmental monthly overhead performance report comparing actual costs with the budget allowance for the total number of hours worked.

Analyze:

If Bright Products, Inc., operates at the expected production level of $1,700$ direct labor hours, what total manufacturing overhead cost is projected per direct labor hour?Complete this question by entering your answers in the tabs below.

Required $1$

Analyze

Prepare a flexible budget for the department for the month of May $20$X$1,$ assuming that the expected production is for $1,700$ direct labor hours. Show costs for production levels of $90$ percent and $110$ percent of the expected production level of $1,700$ hours. $($Round your answer to $2$ decimal places.$)$

$\backslash$table$[[$BRIGHT PRODUCTS, INC.$],[$Flexible Budget for Manufacturing Overhead$],[$Month of May $20$X$1],[$Number of direct hours,,$1,530,$hrs$,,1,700,$hrs$,,1,870,$hrs$],[$Percent of expected capacity,,$90,\%,,100,\%,,110,\%$