e Chegg Study | Guided S: x \\ e C Accounting Question × / WileyPLUS X New Tab c

Question

e Chegg Study | Guided S: x e C Accounting Question × / WileyPLUS X New Tab c Secure | https:/ r.uni Wiley PLUS: MyWilsxPLUS I Help I Conat sI Leu Oul WileyPLUS andt, Accounting Principles, 12e Accounting Principles I & II (BU 155-156) Home Read, Study& Practice Gradebook ORTON Downloadable cTextbook Ass anment Open Assignment SSAGE MY INSTRUCTOR FULI NTER VERSTON Problem 24 2A Zelmer Company manufactures tablecloths, Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system 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. HW Chapter 24 Rate per Direct Labor Hour Annual Fixed Costs Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Review Score Review Results by Study $40,900 16,440 14,400 30,720 $0.41 Supervision 0.54 Depreciation 0.30 Insurance 0.22 Rent The master overhead budoet was prepared on the expectaion that 478,700 direct labor 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: indirect labor $0.44, indirect materials $0.51, factory utilities $0.33, and factory repairs s0.27 Fixed: same as budoeted. (a) Prepare a monthly manufacturing overhead fexible budget for the year ending December 31, 2017, assuming production levels range from 40,400 to 54,600 direct labor hours. Use increments of 4,800 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Heable Budget For the Year 017 ctivity Level Version 4.24.2.4 Type here to search 11/29/2017

Explanation / Answer

Zelmar Company Manufacturing Overhead Flexible Budget Report For the month ended Dec 31, 2017 Production 40400 45200 50000 54800 Variable OH: Indirect Labor 16564 18532 20500 22468 Indirect Material 21816 24408 27000 29592 Utilities 12120 13560 15000 16440 Repair 8888 9944 11000 12056 Total 59388 66444 73500 80556 Fixed OH: Supervision 3400 3400 3400 3400 Depreciation 1370 1370 1370 1370 Insurance 1200 1200 1200 1200 Rent 2560 2560 2560 2560 Total 8530 8530 8530 8530 Total 67918 74974 82030 89086 Zelmar Company Manufacturing Overhead Flexible Budget Report (45500) For the month ended June 30, 2017 Budgeted Actual Variance F or A Variable OH: Indirect Labor 18655 20020 -1365 Adverse Indirect Material 24570 23205 1365 Favorable Utilities 13650 15015 -1365 Adverse Repair 10010 12285 -2275 Adverse Total 66885 70525 -3640 Adverse Fixed OH: Supervision 3400 3400 0 - Depreciation 1370 1370 0 - Insurance 1200 1200 0 - Rent 2560 2560 0 Total 8530 8530 0 - Total Level 75415 79055 -3640 Adverse Formula for Monthly Computation is 8530+ 1.47 Per DLH

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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