Question

lexible Budget Application
The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity:

Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016
Variable costs:
Factory supplies				$100,000
Indirect labor				152,000
Utilities				68,000
Patent royalties on secret process				296,000
Total variable overhead					$616,000
Fixed costs:
Supervisory salaries				160,000
Depreciation on factory equipment				144,000
Factory taxes				48,000
Factory insurance				32,000
Utilities (base charge)				80,000
Total fixed overhead					464,000
Total manufacturing overhead					$1,080,000

The polishing department was operated for 4,500 hours during April and incurred the following manufacturing overhead costs:

Factory supplies				$97,470
Indirect labor				136,110
Utilities (usage factor)				82,800
Utilities (base factor)				96,000
Patent royalties				280,366
Supervisory salaries				167,000
Depreciation on factory equipment				144,000
Factory taxes				55,000
Factory insurance				32,000
Total manufacturing overhead incurred				$1,090,746

Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,500 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts.

Do not use negative signs with your answers below.
Do not round until your final answer. Round answers to nearest whole number, if applicable.
Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers.

Taylor Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended April 30, 2016
			Actual Costs	Budget (4,500 hours)	Variances
Variable costs:
Factory supplies			$Answer	$Answer	$Answer	AnswerFU
Indirect labor			Answer	Answer	Answer	AnswerFU
Utilities			Answer	Answer	Answer	AnswerFU
Patent royalties			Answer	Answer	Answer	AnswerFU
Total variable overhead			Answer	Answer	Answer	AnswerFU
Fixed costs:
Supervisory salaries			Answer	Answer	Answer	AnswerFU
Depreciation on equipment			Answer	Answer	Answer
Factory taxes			Answer	Answer	Answer	AnswerFU
Factory insurance			Answer	Answer	Answer
Utilities			Answer	Answer	Answer	AnswerFU
Total fixed overhead			Answer	Answer	Answer	AnswerFU
Total overhead costs			$Answer	$Answer	$Answer	Answer

Answer 1

Budgeted hours = 5,000

Factory Supplies = $100,000
Factory Supplies per hour = $100,000 / 5,000
Factory Supplies per hour = $20.00

Indirect Labor = $152,000
Indirect Labor per hour = $152,000 / 5,000
Indirect Labor per hour = $30.40

Utilities = $68,000
Utilities per hour = $68,000 / 5,000
Utilities per hour = $13.60

Patent Royalties on Secret Process = $296,000
Patent Royalties on Secret Process per hour = $296,000 / 5,000
Patent Royalties on Secret Process per hour = $59.20