Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.30 0.90 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor 0.40 $10,670 Fixed Costs Supervision $4,300
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.30 0.90 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor 0.40 $10,670 Fixed Costs Supervision $4,300
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month....
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