ent BACK Problem 10-1A Bumblebee Company etimates that 322.300 direct labor hour

Question

ent BACK Problem 10-1A Bumblebee Company etimates that 322.300 direct labor hours will te worked during the coning yea, 2017, in the Packaging 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. Fixed Overhead Costs Variable Overhead Costs Supervision Deprecdiation Insurance Rent Property taxes 85,680 Indirect labor 74,280 Indirect materials 24,600 Repairs 18,120 Utilities 19,320 Lubricants $128,920 83,798 45,122 48,345 16,115 $322,300 $222,000 hours It is estimated that direct labor hours worked each month wil range from 29,500 to 37,600 During October, 29,500 direct labor hours were worked and the following overhead costs were ixed overhead costs: Supervision $7,.140, Depreciation $6,190, Insurance $2,025, Rent $1.,510, and property taxes $1.610. ariable overhead costs: Indirect labor $12.880, Indirect materials, $7,220, Repairs $4,070, Utilies s4,705, and Lubricants $1,725 a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct labor hour s over the relevant range for the year ending December 31, 2017. (ist ariable costs before fixed costs.) BUMBLEBEE COMPANY Honthly Manufacturing Overhead FHexible Budget For the Year 2017

Explanation / Answer

Solution a:

Solution b:

Computation of standard variable overhead per direct labor hour Particulars Budgeted Cost Budgted DLH Overhead Rate Indirect Labor $128,920.00 322300 $0.40 Indirect materials $83,798.00 322300 $0.26 Repairs $45,122.00 322300 $0.14 Utilities $48,345.00 322300 $0.15 Lubricants $16,115.00 322300 $0.05

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