You have just been hired by OpenDoor Corporation, the manufacturer of a revoluti

Question

You have just been hired by OpenDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for April Actual Cost Cost Formula Utilities Maintenance Supplies Indirect labor Depreciation $68,600 $17,800 plus $0.17 per machine-hour $39,700 plus $3.00 per machine-hour $0.40 per machine-hour $95,300 plus $1.65 per machine-hour in April $ 23,405 $97,500 $ 8,200 $131,925 $ 71,300 During April, the company worked 19,500 machine-hours and produced 14,500 units. The company had originally planned to work 21,500 machine-hours during April Required: 1. Prepare a flexible budget for April OpenDoor Corporation Flexible Budget For the Month Ended April 30 Flexible Budget Machine-hours Utilities Maintenance Supplies Indirect labor Depreciation Total

Explanation / Answer

Flexible budget for April Machine hours 19500 Utilties 21115 Maintenance 98200 Supplies 7800 Indirect labor 127475 Depreciation 68600 total cost 323190 Spending variance Flexible Actual Variance Utilities 21115 23,405 -2,290 U Maintenance 98200 97,500 700 F Supplies 7800 8,200 -400 U Indirect labor 127475 131,925 -4,450 U Depreciation 68600 71,300 -2,700 U total cost 323190 332,330 -9,140 U

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.