Question

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 $1.00
Indirect materials 0.70
Utilities 0.20

Fixed overhead costs per month are Supervision $4,100, Depreciation $1,900, and Property Taxes $700. The company believes it will normally operate in a range of 7,300–10,900 direct labor hours per month.

Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)

MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the Year 2017
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
$
[Entry field with correct answer]
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]
$
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]
[Entry field with correct answer]

Activity Level
Depreciation
Direct Labor Hours
Fixed Costs
Indirect Labor
Indirect Materials
Property Taxes
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Utilities
Variable Costs
$
[Entry field with correct answer]
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]
$
[Entry field with correct answer]

Answer 1

			Flexible	Budget
direct labor hours			7,300	8,500	9,700	10,900
variable costs
Indirect labor		1	7300	8500	9700	10900
indirect materials		0.7	5110	5950	6790	7630
utilities		0.2	1460	1700	1940	2180
total variable costs		1.9	13870	16150	18430	20710
fixed cost
supervision			4,100	4,100	4,100	4,100
Depreciation			1,900	1,900	1,900	1,900
property taxes			700	700	700	700
total fixed cost			6,700	6,700	6,700	6,700
total cost			20,570	22,850	25,130	27,410