Question

Clampit Company hour are as follows: uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine Indirect labor $5.00 Indirect materials $2.10 Maintenance $0.50 Utilities $0.40 Fixed overhead costs per month are Supervision $1,200 Insurance $400 Property taxes $600 Depreciation $1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of June 2020, the company incurs the following manufacturing overhead costs: Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All hp The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of June 2020, the company incurs the following manufacturing overhead costs: Indirect labor $28,000 Indirect materials $16,200 Maintenance $2,800 Utilities $1,900 Supervision $1,440 Insurance $400 Property $600 taxes Depreciation $1,860 Instructions [A] Prepare a flexible budget report assuming that Clampit used 6,000 machine hours during June 2020. BExplain clearly how the flexible budget is a more favorable analysis of performance than a static budget. Be specific. TTT Arial T E 3 (12pt) Click Save and Submit to save and submit. Click Save All Answers to save all anseers. Save hp

Answer 1

Elexible Budget Report (A) Fer gune (booo hours) Indirect labous (6o0ox5) Indirct Materl 16000x2 1) Mainten enu Coulities 30000 /26o0 3000 6000x-5) 6o0ox.4) Supernaon 1200 Ins4Yane propesty Daprecuaha 1900 52000 ahich change im level of output do not chan usipul Plexible budzet (3) ene hauge But statc budget is Elerible bucget the with more measuremment ktatic Compare unth &tandlard berformmance thm fexibli louclget result the above aus and $52000 actual Actual cost $53200 Yepest cost s per blerible