Exercise 24-3 Myers Company uses a flexible budget for manufacturing overhead ba

Question

Exercise 24-3 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 $1.30 0.60 0.40 Fixed overhead costs per month are Supervision $3,800, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,100 12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.)

Explanation / Answer

Solution:

Myers Company Monthly Manufacturing Overhead Flexible Budget For the year 2017 Particulars DLH - 8100 DLH - 9400 DLH - 10700 DLH - 12000 Direct Labor hours 8100 9400 10700 12000 Variable Costs: Indirect labor $10,530.00 $12,220.00 $13,910.00 $15,600.00 Indirect Materials $4,860.00 $5,640.00 $6,420.00 $7,200.00 Utilities $3,240.00 $3,760.00 $4,280.00 $4,800.00 Total Variable overhead cost $18,630.00 $21,620.00 $24,610.00 $27,600.00 Fixed overhead costs: Supervision $3,800.00 $3,800.00 $3,800.00 $3,800.00 Depreciation $1,000.00 $1,000.00 $1,000.00 $1,000.00 Property Taxes $900.00 $900.00 $900.00 $900.00 Total Fixed overhead cost $5,700.00 $5,700.00 $5,700.00 $5,700.00 Total Overhead Cost $24,330.00 $27,320.00 $30,310.00 $33,300.00

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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