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 14,000 hours of productive capacity in the department:

Variable overhead cost:
Indirect factory labor	$109,200
Power and light	4,480
Indirect materials	44,800
Total variable overhead cost		$158,480
Fixed overhead cost:
Supervisory salaries	$55,470
Depreciation of plant and equipment	34,870
Insurance and property taxes	22,190
Total fixed overhead cost		112,530
Total factory overhead cost		$271,010

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 12,000, 14,000, and 16,000 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	12,000	14,000	16,000
Variable overhead cost:
Indirect factory labor	$	$	$
Power and light
Indirect materials
Total variable factory overhead	$	$	$
Fixed factory overhead cost:
Supervisory salaries	$	$	$
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead	$	$	$
Total factory overhead cost	$	$	$

Answer 1

Leno manufacturing company
Factory overhead cost budget - press deptt
Direct labor hours			12000	14000	16000
Variable overhead cost
Indirect factory labor 109200/14000=7.8			93600	109200	124800
power & light 4480/14000 =0.32			3840	4480	5120
indirect material 44800/14000= 3.2			38400	44800	51200
total variable factory overhead (A)			135840	158480	181120
Fixed factory overhead cost
supervisory salaries			55470	55470	55470
Deperication of palnt & equipment			34870	34870	34870
insurance & property taxes			22190	22190	22190
total fixed factory overhead (B)			112530	112530	112530
total factory overhead cost (A)+(B)			248370	271010	293650

Give a thumbs up if it is helpful

please let me know if any doubt