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cooper manufacturing has prepared the following monthly flexible manufacturing o

ID: 2467277 • Letter: C

Question

cooper manufacturing has prepared the following monthly flexible manufacturing overhead budget for its mixing department.

cooper manufacturing

monthly flexible manufacturing overhead budget

mixing department

activity level

         direct labor hours                              3,000                   4,000

variable costs

         indirect labor                            15,000                  20,000

         indirect materials                               3,000                   4,000

         factory supplies                                4,500                   6,000                  

             total variable                                22,500                  30,000

fixed costs                                      

         depreciation                                     20,000                  20,000

         supervision                                     12,000                  12,000

         property tax                                     15,000                  15,000

            total fixed                                      47,000                  47,000

total costs                                                 69,500                  77,000

instructions

prepare a flexible budget at the 5,000 direct labor hours of activity.

Explanation / Answer

Ans-

Flexible Budget Performance Report Activity Level     3,000     4,000                         5,000 Expenses: Variable Costs Indirect Labor 15,000 20,000                       25,000 (15 per hour) Indirect Materials     3,000     4,000                         5,000 (1 per hour) Factory Supplies     4,500     6,000                         7,500 (1.5 per hour) Total Variable Cost 22,500 30,000                       37,500 Fixed Costs Depricaition 20,000 20,000                       20,000 Supervision 12,000 12,000                       12,000 Property Tax 15,000 15,000                       15,000 Total Fixed Cost 47,000 47,000                       47,000 Total 69,500 77,000                       84,500