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: Indirect labor Indirect materials Utilities $1.30 0.60 0.40 Fixed overhead costs per month are Supervision $3,800, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,100-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 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 2020
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Answer 1

Answer-

MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the year 2017
Direct labor hours	8100	9400	10700	12000
Variable costs:-	$	$	$	$
Indirect labor	8100 hours*$1.30 per hour=10530	9400 hours*$1.30 per hour=12220	10700 hours*$1.30 per hour=13910	12000 hours*$1.30 per hour=15600
Indirect materials	8100 hours*$0.60 per hour=4860	9400 hours*$0.60 per hour=5640	10700 hours*$0.60 per hour=6420	12000 hours*$0.60 per hour=7200
Utilities	8100 hours*$0.40 per hour=3240	9400 hours*$0.40 per hour=3760	10700 hours*$0.40 per hour=4280	12000 hours*$0.40 per hour=4800
Total variable costs (a)	18630	21620	24610	27600
Fixed costs:-
Supervision	3800	3800	3800	3800
Depreciation	1000	1000	1000	1000
Property Tax	900	900	900	900
Total fixed costs (b)	5700	5700	5700	5700
Total cost (c=a+b)	24330	27320	30310	33300