Question

Your answer is partially correct. 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 Indirect materials Utilities $1.40 0.50 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 Hours 4 1,300 1300

Answer 1

Answer with working is given below

MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Hours 7,700 9,000 10,300 11,600 Variable Cost Indirect Labor Indirect Materials Utilities Total Variable cost $10,780 $3,850 $2,310 $16,940 $12,600 $4,500 $2,700 $19,800 $14,420 $5,150 $3,090 $22,660 $16,240 $5,800 $3,480 $25,520 Fixed Costs Depreciation Property taxes Supervision Total Fixed Cost $1,300 $700 $4,500 $6,500 $1,300 $700 $4,500 $6,500 $1,300 $700 $4,500 $6,500 $1,300 $700 $4,500 $6,500 Total Cost $23,440 $26,300 $29,160 $32,020