Leno Manufacturing Company prepared the following factory overhead cost budget f
ID: 2447827 • Letter: L
Question
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:
Leno Manufacturing Company - Press Department
Factory Overhead Cost Budget—Press Department
For the Month Ended October 31
1
Variable overhead cost:
2
Indirect factory labor
$180,000.00
3
Power and light
12,000.00
4
Indirect materials
64,000.00
5
Total variable overhead cost
$256,000.00
6
Fixed overhead costs:
7
Supervisory salaries
$80,000.00
8
Depreciation of plant and equipment
50,000.00
9
Insurance and property taxes
32,000.00
10
Total fixed overhead cost
162,000.00
11
Total factory overhead cost
$418,000.00
Total variable overhead cost
Leno Manufacturing Company - Press Department
Factory Overhead Cost Budget—Press Department
For the Month Ended November 30
1
Direct labor hours
18,000
20,000
22,000
2
Variable overhead cost:
3
4
5
6
7
Fixed overhead cost:
8
9
10
11
12
Leno Manufacturing Company - Press Department
Factory Overhead Cost Budget—Press Department
For the Month Ended October 31
Explanation / Answer
Particulars 18000 20000 22000 Variable Overhead Cost Indirect Factory Labor ( 180000/20000)*Direct labor hours 162000 180000 198000 Power And Light ( 12000/20000) * Direcxtt labor hours 10800 12000 13200 Indirect Materials ( 64000/20000)*18000 57600 64000 70400 Total Variable cOst 230400 256000 281600 Fixed Overhead cost Supervisor Salaries 80000 80000 80000 Depreciation of Plant And equipment 50000 50000 50000 Insurance and property Taxes 32000 32000 32000 Total Fixed Overhead 162000 162000 162000 Total Factory Overhead Cost 392400 418000 443600
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