Question

Myers Company uses a flodba budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor Indirect matcrials $1.20 0.80 Utilities 0.20 Fixed overhead costs per month are Supervision $3,900. Depreciation $2,000, and Property Taxes $900. The company believes it will normally operate in a range of 8.000-11.800 direct labor hours per month Prepare a monthly manufacturing overhead flexible budget for 2020 for the croected 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 2020 Activity Level : Direct Labor Hours: Variable : Indirect Mail : Utilities Total Variable Costs: Hyed Costs Supervision Depreciation Property Taxes . Total Fixed Costs Total Costs

Answer 1

Answer-

MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the year 2020
Direct labor hours	8000	9200	10400	11600
Variable costs:-
Indirect labor	8000 hours*$1.30 per hour=10400	9200 hours*$1.30 per hour=11960	10400 hours*$1.30 per hour=13520	11600 hours*$1.30 per hour=15080
Indirect materials	8000 hours*$0.80 per hour=6400	9200 hours*$0.80 per hour=7360	10400 hours*$0.80 per hour=8320	11600 hours*$0.80 per hour=9280
Utilities	8000 hours*$0.20 per hour=1600	9200 hours*$0.20 per hour=1840	10400 hours*$0.20 per hour=2080	11600 hours*$0.20 per hour=2320
Total variable costs (a)	18400	21160	23920	26680
Fixed costs:-
Supervision	3900	3900	3900	3900
Depreciation	2000	2000	2000	2000
Property Tax	800	800	800	800
Total fixed costs (b)	6700	6700	6700	6700
Total costs (c=a+b)	25100	27860	30620	33380