You, using your accounting knowledge, had previously budgeted a cost of $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. Operating expenses are projected to be $80,000 annually.

After looking over the costs for manufacturing overhead and operating expenses, you approximate that 85% of manufacturing overhead and 20% of operating expenses are variable costs.

Jordan wants you to calculate a flexible manufacturing overhead budget assuming an annual level of 230,000 units instead of

Chapter 22 Questions:

1. What would be total manufacturing overhead variable costs for this new level? (Round to the nearest dollar.)

2. What would be total manufacturing overhead fixed costs for this new level? (Round to the nearest dollar.)

3. Taylor asks you if flexible budgets can be calculated on a monthly basis. You state, Of course! Lets create a monthly manufacturing overhead flexible budget for 20,000 units. Please pass me the brownies! What would be total manufacturing overhead variable costs for this new level? (Round to the nearest dollar.)

4. Taylor asks you if flexible budgets can be calculated on a monthly basis. You state, Of course! Lets create a monthly manufacturing overhead flexible budget for 20,000 units. Please pass me the brownies! What would be total manufacturing overhead fixed costs for this new level? (Round to the nearest dollar.)

5. Given an annual master budget of 200,000 units with actual production of 210,000 units, you have been tasked to formulate a flexible manufacturing overhead budget report. What will be total manufacturing overhead costs at the budget level?