Bumblebee Company estimates that 388,800 direct labor hours will be worked durin

Question

Bumblebee Company estimates that 388,800 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year. It is estimated that direct labor hours worked each month will range from 27,600 to 35,700 hours. During October. 27,600 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision dollar 7,720, Depreciation S5.600, Insurance dollar 2,135, Rent dollar 1,930. and Property taxes dollar 1,770. Variable overhead costs: Indirect labor dollar 13,696, Indirect materials, dollar 7,328, Repairs dollar 4,376. Utilities dollar 4,550, and Lubricants dollar 2,272. Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct labor hours over the relevant range for the year ending December 31. 2017. (List variable costs before fixed costs.)

Explanation / Answer

Answer:

BUMBLEBEE COMPANY Packaging Department Monthly manufacturing overhead Flxible budget For the year 2017 Activity level Direct labor hours 27600 30600 33600 35700 Variable costs: Indirect labor (0.46) 12696 14076 15456 16422 Indirect material (0.28) 7728 8568 9408 9996 Repairs (0.16) 4416 4896 5376 5712 Utillities (0.15) 4140 4590 5040 5355 Lubricants (0.07) 1932 2142 2352 2499 Total variable costs 30912 34272 37632 39984 Fixed costs: Supervision 7720 7720 7720 7720 Depreciation 5600 5600 5600 5600 Insurance 2135 2135 2135 2135 Rent 1930 1930 1930 1930 Property taxes 1770 1770 1770 1770 Total fixed costs 19155 19155 19155 19155 Total costs 50067 53427 56787 59139

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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