Question

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 11,000 hours of productive capacity in the department:

Variable overhead costs:
Indirect factory labor	$106,700
Power and light	4,400
Indirect materials	29,700
Total variable overhead cost		$140,800
Fixed overhead costs:
Supervisory salaries	$49,280
Depreciation of plant and equipment	30,980
Insurance and property taxes	19,710
Total fixed overhead cost		99,970
Total factory overhead cost		$240,770

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 9,000, 11,000, and 13,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours	9,000	11,000	13,000
Variable overhead costs:
Indirect factory labor	$	$	$
Power and light
Indirect materials
Total variable factory overhead	$	$	$
Fixed factory overhead costs:
Supervisory salaries	$	$	$
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead	$	$	$
Total factory overhead	$	$	$

Answer 1

factory Overheads Budget
Budgeted DLH		9000	11000	13000
Variable overheads cost:
Indirect factory labor	87300	106700	126100
Power and light		3600	4400	5200
Indirect material		24300	29700	35100
Total Variable factory overheads	115200	140800	166400
Fixed factroy overheads cost:
Supervisory salaries		49280	49280	49280
Depreciation on Plant and Machinery	30980	30980	30980
Insurance and Property taxes	19710	19710	19710
Total Fixed factory overheads	99970	99970	99970
Total factory overheads	215170	240770	266370