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C Accounting question | Cx WileyPLUS c Secure | https:/ r.uni WilcyPLUS: MywileyPLUSIHep I Contact UsI LogOut WileyPLUS gandt, Accounting Principles, 12e Accounting Principles I & II (BU 155-156) Home Read, Study & Practice Graclebook ORION Downloadable eTextbook Assinnmant Open Assignment TER VERSION B ASSIGNMENT RESOURCES Problem 24-2A HW Chapter 24 Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control systam for 2017. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours. Rate per Direct Labor Hour Annual Fixed Costs Varlable costs Indirect labor Indirect materials Factory utilities Factory repairs 0.4 Supervision $40,800 16,440 14,400 30,720 Review Score obiective 0.30 Insurance 0.22 Rent The master overhead budget was prepared on the expectation that 478,700 direct labar hours will be worked during the year. In June, 45,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. variable-per direct labor hour: i direct labor 0.44, indirect materials s0.51, factory utilities s0.33, and factory repairs s0.27 Fixed: same as budgeted (a) Prepare a monthly manufacturing overhead fiexible budget for the year ending December 31, 2017, assuming production levels range from 40,400 to 54,800 direct labor hours. Use increments of 4,800 direct labor hours. (List variable costs belore lixed costs.) ELMER COMPANY g overhead Flexible Budget For the Year 2017 All Rights Reserved. A Division of Version 4.24.2-4 Type here to search 11/28/2017

Explanation / Answer

Activity Level Direct Labor Hours 40400 45200 50000 54800 Variable Costs Indirect Labor 16564 18532 20500 22468 Indirect Materials 21816 24408 27000 29592 Factory Utilities 12120 13560 15000 16440 Factory Repairs 8888 9944 11000 12056 Total Variable Costs 59388 66444 73500 80556 Fixed Costs Supervision 40800 40800 40800 40800 Depreciation 16440 16440 16440 16440 Insurance 14400 14400 14400 14400 Rent 30720 30720 30720 30720 Total Fixed Costs 102360 102360 102360 102360 Total Costs 161748 168804 175860 182916

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