In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Cost Formula Maintenance $34,500 + $1.25 DLH Power $0.50 DLH Indirect labor $68,400 + $2.30 DLH Rent $31,500 Required: 1. Prepare an overhead budget for the expected activity level for the coming year. Round your answers to the nearest cent, if required. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 88a408fe005bff0_1DLH Variable costs: Maintenance $fill in the blank 88a408fe005bff0_2 $fill in the blank 88a408fe005bff0_3 Power fill in the blank 88a408fe005bff0_4 fill in the blank 88a408fe005bff0_5 Indirect labor fill in the blank 88a408fe005bff0_6 fill in the blank 88a408fe005bff0_7 Total variable costs $fill in the blank 88a408fe005bff0_8 Fixed costs: Maintenance $fill in the blank 88a408fe005bff0_9 Indirect labor fill in the blank 88a408fe005bff0_10 Rent fill in the blank 88a408fe005bff0_11 Total fixed costs fill in the blank 88a408fe005bff0_12 Total overhead costs $fill in the blank 88a408fe005bff0_13 Feedback 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products). Round your answers to the nearest cent, if required. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 9be6e2049f8cffb_1DLH Variable costs: Maintenance $fill in the blank 9be6e2049f8cffb_2 $fill in the blank 9be6e2049f8cffb_3 Power fill in the blank 9be6e2049f8cffb_4 fill in the blank 9be6e2049f8cffb_5 Indirect labor fill in the blank 9be6e2049f8cffb_6 fill in the blank 9be6e2049f8cffb_7 Total variable costs $fill in the blank 9be6e2049f8cffb_8 Fixed costs: Maintenance $fill in the blank 9be6e2049f8cffb_9 Indirect labor fill in the blank 9be6e2049f8cffb_10 Rent fill in the blank 9be6e2049f8cffb_11 Total fixed costs fill in the blank 9be6e2049f8cffb_12 Total overhead costs $fill in the blank 9be6e2049f8cffb_13 Feedback Prepare an overhead budget for production that is 20 percent lower than expected. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 581940094fd1f8c_1DLH Variable costs: Maintenance $fill in the blank 581940094fd1f8c_2 $fill in the blank 581940094fd1f8c_3 Power fill in the blank 581940094fd1f8c_4 fill in the blank 581940094fd1f8c_5 Indirect labor fill in the blank 581940094fd1f8c_6 fill in the blank 581940094fd1f8c_7 Total variable costs $fill in the blank 581940094fd1f8c_8 Fixed costs: Maintenance $fill in the blank 581940094fd1f8c_9 Indirect labor fill in the blank 581940094fd1f8c_10 Rent fill in the blank 581940094fd1f8c_11 Total fixed costs fill in the blank 581940094fd1f8c_12 Total overhead costs $fill in the blank 581940094fd1f8c_13
In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Cost Formula Maintenance $34,500 + $1.25 DLH Power $0.50 DLH Indirect labor $68,400 + $2.30 DLH Rent $31,500 Required: 1. Prepare an overhead budget for the expected activity level for the coming year. Round your answers to the nearest cent, if required. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 88a408fe005bff0_1DLH Variable costs: Maintenance $fill in the blank 88a408fe005bff0_2 $fill in the blank 88a408fe005bff0_3 Power fill in the blank 88a408fe005bff0_4 fill in the blank 88a408fe005bff0_5 Indirect labor fill in the blank 88a408fe005bff0_6 fill in the blank 88a408fe005bff0_7 Total variable costs $fill in the blank 88a408fe005bff0_8 Fixed costs: Maintenance $fill in the blank 88a408fe005bff0_9 Indirect labor fill in the blank 88a408fe005bff0_10 Rent fill in the blank 88a408fe005bff0_11 Total fixed costs fill in the blank 88a408fe005bff0_12 Total overhead costs $fill in the blank 88a408fe005bff0_13 Feedback 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products). Round your answers to the nearest cent, if required. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 9be6e2049f8cffb_1DLH Variable costs: Maintenance $fill in the blank 9be6e2049f8cffb_2 $fill in the blank 9be6e2049f8cffb_3 Power fill in the blank 9be6e2049f8cffb_4 fill in the blank 9be6e2049f8cffb_5 Indirect labor fill in the blank 9be6e2049f8cffb_6 fill in the blank 9be6e2049f8cffb_7 Total variable costs $fill in the blank 9be6e2049f8cffb_8 Fixed costs: Maintenance $fill in the blank 9be6e2049f8cffb_9 Indirect labor fill in the blank 9be6e2049f8cffb_10 Rent fill in the blank 9be6e2049f8cffb_11 Total fixed costs fill in the blank 9be6e2049f8cffb_12 Total overhead costs $fill in the blank 9be6e2049f8cffb_13 Feedback Prepare an overhead budget for production that is 20 percent lower than expected. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH fill in the blank 581940094fd1f8c_1DLH Variable costs: Maintenance $fill in the blank 581940094fd1f8c_2 $fill in the blank 581940094fd1f8c_3 Power fill in the blank 581940094fd1f8c_4 fill in the blank 581940094fd1f8c_5 Indirect labor fill in the blank 581940094fd1f8c_6 fill in the blank 581940094fd1f8c_7 Total variable costs $fill in the blank 581940094fd1f8c_8 Fixed costs: Maintenance $fill in the blank 581940094fd1f8c_9 Indirect labor fill in the blank 581940094fd1f8c_10 Rent fill in the blank 581940094fd1f8c_11 Total fixed costs fill in the blank 581940094fd1f8c_12 Total overhead costs $fill in the blank 581940094fd1f8c_13
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items:
| Cost Formula | |
| Maintenance | $34,500 + $1.25 DLH |
| Power | $0.50 DLH |
| Indirect labor | $68,400 + $2.30 DLH |
| Rent | $31,500 |
Required:
1. Prepare an overhead budget for the expected activity level for the coming year. Round your answers to the nearest cent, if required.
| Meliore, Inc. | |||
| Overhead Budget | |||
| For the Year Ended December 31 | |||
| Per DLH | |||
| fill in the blank 88a408fe005bff0_1DLH | |||
| Variable costs: | |||
| Maintenance | $fill in the blank 88a408fe005bff0_2 | $fill in the blank 88a408fe005bff0_3 | |
| Power | fill in the blank 88a408fe005bff0_4 | fill in the blank 88a408fe005bff0_5 | |
| Indirect labor | fill in the blank 88a408fe005bff0_6 | fill in the blank 88a408fe005bff0_7 | |
| Total variable costs | $fill in the blank 88a408fe005bff0_8 | ||
| Fixed costs: | |||
| Maintenance | $fill in the blank 88a408fe005bff0_9 | ||
| Indirect labor | fill in the blank 88a408fe005bff0_10 | ||
| Rent | fill in the blank 88a408fe005bff0_11 | ||
| Total fixed costs | fill in the blank 88a408fe005bff0_12 | ||
| Total overhead costs | $fill in the blank 88a408fe005bff0_13 |
2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products). Round your answers to the nearest cent, if required.
| Meliore, Inc. | |||
| Overhead Budget | |||
| For the Year Ended December 31 | |||
| Per DLH | |||
| fill in the blank 9be6e2049f8cffb_1DLH | |||
| Variable costs: | |||
| Maintenance | $fill in the blank 9be6e2049f8cffb_2 | $fill in the blank 9be6e2049f8cffb_3 | |
| Power | fill in the blank 9be6e2049f8cffb_4 | fill in the blank 9be6e2049f8cffb_5 | |
| Indirect labor | fill in the blank 9be6e2049f8cffb_6 | fill in the blank 9be6e2049f8cffb_7 | |
| Total variable costs | $fill in the blank 9be6e2049f8cffb_8 | ||
| Fixed costs: | |||
| Maintenance | $fill in the blank 9be6e2049f8cffb_9 | ||
| Indirect labor | fill in the blank 9be6e2049f8cffb_10 | ||
| Rent | fill in the blank 9be6e2049f8cffb_11 | ||
| Total fixed costs | fill in the blank 9be6e2049f8cffb_12 | ||
| Total overhead costs | $fill in the blank 9be6e2049f8cffb_13 |
Prepare an overhead budget for production that is 20 percent lower than expected.
| Meliore, Inc. | |||
| Overhead Budget | |||
| For the Year Ended December 31 | |||
| Per DLH | |||
| fill in the blank 581940094fd1f8c_1DLH | |||
| Variable costs: | |||
| Maintenance | $fill in the blank 581940094fd1f8c_2 | $fill in the blank 581940094fd1f8c_3 | |
| Power | fill in the blank 581940094fd1f8c_4 | fill in the blank 581940094fd1f8c_5 | |
| Indirect labor | fill in the blank 581940094fd1f8c_6 | fill in the blank 581940094fd1f8c_7 | |
| Total variable costs | $fill in the blank 581940094fd1f8c_8 | ||
| Fixed costs: | |||
| Maintenance | $fill in the blank 581940094fd1f8c_9 | ||
| Indirect labor | fill in the blank 581940094fd1f8c_10 | ||
| Rent | fill in the blank 581940094fd1f8c_11 | ||
| Total fixed costs | fill in the blank 581940094fd1f8c_12 | ||
| Total overhead costs | $fill in the blank 581940094fd1f8c_13 |
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