Raney company uses a flexible budget for manufacturingoverhead based on direct l
ID: 2449297 • Letter: R
Question
Raney company uses a flexible budget for manufacturingoverhead based on direct labor hours. Variable manufacturingoverhead costs per direct labor hour are as follows Indirectlabor $1.00 Indirectmaterials 0.50 Utilities 0.40 Fixed overhead costs per month are: Supervision $4,000,Depreciation $1,500, and Property taxes $800. The company believesit will normally operate in a range of 7,000-10,000 direct laborhours per month Instructions Prepare a monthly flexible manufacturing overhead budgetfor 2008 for the expected range of activity, using increments of1,000 direct labor hours Raney company uses a flexible budget for manufacturingoverhead based on direct labor hours. Variable manufacturingoverhead costs per direct labor hour are as follows Indirectlabor $1.00 Indirectmaterials 0.50 Utilities 0.40 Fixed overhead costs per month are: Supervision $4,000,Depreciation $1,500, and Property taxes $800. The company believesit will normally operate in a range of 7,000-10,000 direct laborhours per month Instructions Prepare a monthly flexible manufacturing overhead budgetfor 2008 for the expected range of activity, using increments of1,000 direct labor hoursExplanation / Answer
Flexible Budget forManufacturing Overhead
Flexible Budget forManufacturing Overhead
Level of Activity 7,000.00 8,000.00 9,000.00 10,000.00 Variable Overhead Indirect Labor 7,000.00 8,000.00 9,000.00 10,000.00 Indirect Material 3,500.00 4,000.00 4,500.00 5,000.00 Utilities 2,800.00 3,200.00 3,600.00 4,000.00 Fixed Overhead Supervision 4,000.00 4,000.00 4,000.00 4,000.00 Depreciation 1,500.00 1,500.00 1,500.00 1,500.00 Property Taxes 800.00 800.00 800.00 800.00 Total 19,600.00 21,500.00 23,400.00 25,300.00Related Questions
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