Will rate/thumbs up for correct answers, Thank you! E22-3Prepare flexible manufa

Question

Will rate/thumbs up for correct answers, Thank you!

E22-3Prepare flexible manufacturing overhead budger Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities S1.00 0.70 0.40 ision S4,000, depreciation, S1,200, and property tax The company believes it will normally operate in a range of 7,000 - 10,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "7" .

Explanation / Answer

Prepare monthly manufacturing overhead flexible budget :

Activity level Direct labour hours 7000 8000 9000 10000 Variable costs Indirect labour 7000 8000 9000 10000 Indirect material 4900 5600 6300 7000 Utilities 2800 3200 3600 4000 Total variable cost 14700 16800 18900 21000 Fixed costs Supervision 4000 4000 4000 4000 Depreciation 1200 1200 1200 1200 Property taxes 800 800 800 800 Total fixed cost 6000 6000 6000 6000 Total cots 20700 22800 24900 27000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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