Bumblebee Company estimates that 366,700 direct labor hours will be worked durin

Question

Bumblebee Company estimates that 366,700 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 29,200 to 39,700 hours. During October. 29,200 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $6,270, Insurance $2,585, Rent $2,250, and Property taxes $1,100. Variable overhead costs: Indirect labor $14,472. Indirect materials. $7,796, Repairs $5,800, Utilities $4,820, and Lubricants $1,850. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,500 direct labor hours over the relevant range for the year ending December 31. 2017. (List variable costs before fixed costs.) (b) Prepare a flexible budget report for October (List variables costs before fixed costs.)

Explanation / Answer

As per Chegg's guidelines I am givind the answer of first question only.

Bumblebee Company Packaging Department Monthly Manufacturing Overhead Flexible Budget For the year 2017 Activity level Direct Labour Hours 29200* 32700 36200 39700 Variable Costs (per unit variable cost) Indirect Labour 0.459995 13431.84 15041.82 16651.8 18261.78 Indirect Material 0.28 8176 9156 10136 11116 Repairs 0.2 5840 6540 7240 7940 Utilitities 0.15 4380 4905 5430 5955 Lubricants 0.05 1460 1635 1810 1985 Total Variable Costs 1.139995 33287.84 37277.82 41267.8 45257.78 Fixed Cost Supervision 90000 90000 90000 90000 Depreciation 75240 75240 75240 75240 Insurance 31320 31320 31320 31320 Rent 27000 27000 27000 27000 Property Taxes 13200 13200 13200 13200 Total Fixed Costs 236760 236760 236760 236760 Total Costs 270047.8 274037.8 278027.8 282017.8

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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