Bonita Company estimates that 366,700 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $90,000 Indirect labor $168,682 Depreciation 75,240 Indirect materials 102,676 Insurance 31,320 Repairs 73,340 Rent 27,000 Utilities 55,005 Property taxes 13,200 Lubricants 18,335 $236,760 $418,038 It is estimated that direct labor hours worked each month will range from 29,200 to 39,700 hours. During October, 29,200 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $6,270, Insurance $2,585, Rent $2,250, and Property taxes $1,100. Variable overhead costs: Indirect labor $14,472, Indirect materials, $7,796, Repairs $5,800, Utilities $4,820, and Lubricants $1.850. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,500 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

Bonita Company estimates that 366,700 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $90,000 Indirect labor $168,682 Depreciation 75,240 Indirect materials 102,676 Insurance 31,320 Repairs 73,340 Rent 27,000 Utilities 55,005 Property taxes 13,200 Lubricants 18,335 $236,760 $418,038 It is estimated that direct labor hours worked each month will range from 29,200 to 39,700 hours. During October, 29,200 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $6,270, Insurance $2,585, Rent $2,250, and Property taxes $1,100. Variable overhead costs: Indirect labor $14,472, Indirect materials, $7,796, Repairs $5,800, Utilities $4,820, and Lubricants $1.850. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,500 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...

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