Question

# Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...

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 12,000 hours of productive capacity in the department:

 Variable overhead cost: Indirect factory labor \$87,600 Power and light 5,280 Indirect materials 38,400 Total variable overhead cost \$131,280 Fixed overhead cost: Supervisory salaries \$45,950 Depreciation of plant and equipment 28,880 Insurance and property taxes 18,380 Total fixed overhead cost 93,210 Total factory overhead cost \$224,490

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 10,000, 12,000, and 14,000 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 10,000 12,000 14,000 Variable overhead cost: Indirect factory labor \$ \$ \$ Power and light Indirect materials Total variable factory overhead \$ \$ \$ Fixed factory overhead cost: Supervisory salaries \$ \$ \$ Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead \$ \$ \$ Total factory overhead cost \$ \$ \$

 Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 10,000 12,000 14,000 Variable overhead cost: Indirect factory labor 73000 87600 102200 Power and light 4400 5280 6160 Indirect materials 32000 38400 44800 Total variable factory overhead 109400 131280 153160 Fixed factory overhead cost: Supervisory salaries 45950 45950 45950 Depreciation of plant and equipment 28880 28880 28880 Insurance and property taxes 18380 18380 18380 Total fixed factory overhead 93210 93210 93210 Total factory overhead cost 202610 224490 246370 Workings: Per hour Variable overhead cost: Indirect factory labor 7.30 =87600/12000 Power and light 0.44 =5280/12000 Indirect materials 3.20 =38400/12000