Question

Indirect labor $1.40 Indirect materials 0.50 Utilities 0.30 Fixed overhead costs per month are Supervision $4,500, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 7,700 – 11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2017 $ $ $ $ $ $ $ $ Question Attempts: Unlimited Save for later Submit Answer

Answer 1

Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.)

MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the Year 2017
Direct labour hours	7700	9000	10300	11600
Variable manufacturing overhead
Indirect labour	10780	12600	14420	16240
Indirect material	3850	4500	5150	5800
Utilities	2310	2700	3090	3480
Total variable manufacturing overhead	16940	19800	22660	25520
Fixed overhead
Supervision	4500	4500	4500	4500
Depreciation	1300	1300	1300	1300
Property taxes	700	700	700	700
Total fixed manufacturing overhead	6500	6500	6500	6500
Total manufacturring overhead	23440	26300	29160	32020