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 18,000 hours of productive capacity in the department:

Variable overhead costs:
Indirect factory labor	$142,200
Power and light	7,020
Indirect materials	46,800
Total variable overhead cost		$196,020
Fixed overhead costs:
Supervisory salaries	$68,610
Depreciation of plant and equipment	43,120
Insurance and property taxes	27,440
Total fixed overhead cost		139,170
Total factory overhead cost		$335,190

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 16,000, 18,000, and 20,000 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	16,000	18,000	20,000
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

prepare a flexible factory overhead cost budget for the Press Department for November for 16,000, 18,000, and 20,000 hours of production.

Direct labor hours	16000	18000	20000
Variable overhead costs:
Indirect factory labor	126400	142200	158000
Power and light	6240	7020	7800
Indirect materials	41600	46800	52000
Total variable factory overhead	174240	196020	217800
Fixed factory overhead costs:
Supervisory salaries	68610	68610	68610
Depreciation of plant and equipment	43120	43120	43120
Insurance and property taxes	27440	27440	27440
Total fixed factory overhead	139170	139170	139170
Total factory overhead	313410	335190	356970