Question

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.

Fixed overhead costs per month are Supervision $4,400, Depreciation $1,500, and Property Taxes $500. The company believes it will normally operate in a range of 7,700–10,700 direct labor hours per month.

Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours. (List variable costs before fixed costs.)
Current Allempl II Progress 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 $1.20 0.50 0.20 Fixed overhead costs per month are Supervision $4,400, Depreciation $1,500, and Property Taxes $500. The company believes it will normally operate in a range of 7,700-10,700 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours. (List variable costs before fixed costs.)

Answer 1

Monthly manufacturing overhead budget

For the year 2020

Activity level
Direct labor hour	7700	8700	9700	10700
variable overhead
Indirect labor	9240	10440	11640	12840
Indirect material	3850	4350	4850	5350
Utilities	1540	1740	1940	2140
Total variable cost	14630	16530	18430	20330
Fixed Overhead
Supervision	4400	4400	4400	4400
Depreciation	1500	1500	1500	1500
Property taxes	500	500	500	500
Total fixed overhead	6400	6400	6400	6400
Total overhead	21030	22930	24830	26730