Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK Exercise 10-3 (Video) Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costsdirect labor hour are as follows: Indirect labor $1.30 Indirect materials 0.80 Utilities 0.20 Fixed overhead costs per month are Supervision $3,900, Depreciation $2,000, and Property Taxes $800. The company believes it will normally operate in a range of 8,000- 11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs befor fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020

Answer 1

DLH 9,200 DLH 10,400 DLH 11,600 Monthly manufacturing overhead flexible budget for 2020 :- Particulars DLH 8,000 Variable manufacturing overhead costs :- Indirect labor 10,400 Indirect material 6,400 Utilities 1,600 Total variable manufacturing overhead 18,400 Fixed overhead costs :- Supervision 3,900 Depreciation 2,000 Property taxes 800 Total fixed overhead cost 6,700 Total Manufacturing overhead 25,100 11,960 7,360 1,840 21,160 13,520 8,320 2,080 23,920 15,080 9,280 2,320 26,680 3,900 2,000 800 6,700 27,860 3,900 2,000 800 6,700 30,620 3,900 2,000 800 6,700 33,380