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Cook Company estimates that 360,000 direct labor hours will be worked during the coming year, 2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year.

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Name: Date;Instructor: Course;Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso;Primer on Using Excel in Accounting by Rex A Schildhouse;P21-1A - Prepare flexible budget and budget report for manufacturing overhead.;Cook Company estimates that 360,000 direct labor hours will be worked during the coming year;2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year.;Fixed Overhead Costs Variable Overhead Costs;Supervision $90,000 Indirect labor $126,000;Depreciation 60,000 Indirect materials 90,000;Insurance 30,000 Repairs 54,000;Rent 24,000 Utilities 72,000;Property taxes 18,000 Lubricants 18,000;$222,000 $360,000;It is estimated that direct labor hours worked each month will range from 27,000 to 36,000;hours.;During October, 27,000 direct labor hours were worked and the following overhead costs were;incurred.;Fixed Overhead Costs Variable Overhead Costs;Supervision $7,500 Indirect labor $10,360;Depreciation 5,000 Indirect materials 6,400;Insurance 2,470 Repairs 4,000;Rent 2,000 Utilities 5,700;Property taxes 1,500 Lubricants 1,640;Instructions;(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours;over the relevant range for the year ending December 31, 2012.;COOK COMPANY;Packaging Department;Monthly Manufacturing Overhead Flexible Budget;For the Year 2012;Activity level;Direct labor hours Number Number Number Number;Variable costs;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Total variable costs (1.00) Formula Formula Formula Formula;Fixed costs;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Title Amount Amount Amount Amount;Total fixed costs Formula Formula Formula Formula;Total costs Formula Formula Formula Formula

 

Paper#81529 | Written in 18-Jul-2015

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