P2. Coyote Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2022, the master overhead budget for the Packaging Department based on 400,000 direct labor hours was as follows. Variable Overhead Costs: Indirect labor Supplics and lubricants Maintenance Uilities Total Fixed Overhead Costs: $480,000 160,000 240,000 200.000 $1,080,000 Depreciation Supervision Property taxes Insurance Total $ 25,000 $ 60,000 25,000 20.000 $130,000 Glenda Expects to operate between 33,000 direct labor hours and 35,000 direct labor hours per month. During July, 34,000 direct labor hours were worked. The company incurred the following variable overhcad costs in July: indirect labor $42,000, supplies and lubricants $12,600, maintenance $17,000, and utilities $15,000. Actual fixed overhead costs were the same as monthly budgeted fixed costs. Instructions: 1. Prepare a monthly flexible manufacturing overhead budget for the expected range of acvity, using increments of 1,000 direct labor hours. 2 Preare a flexible budget report for Glenda for the month of July and provide possible reasons for the difference between the budgeted amount and the actual amount.

P2. Coyote Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2022, the master overhead budget for the Packaging Department based on 400,000 direct labor hours was as follows. Variable Overhead Costs: Indirect labor Supplics and lubricants Maintenance Uilities Total Fixed Overhead Costs: $480,000 160,000 240,000 200.000 $1,080,000 Depreciation Supervision Property taxes Insurance Total $ 25,000 $ 60,000 25,000 20.000 $130,000 Glenda Expects to operate between 33,000 direct labor hours and 35,000 direct labor hours per month. During July, 34,000 direct labor hours were worked. The company incurred the following variable overhcad costs in July: indirect labor $42,000, supplies and lubricants $12,600, maintenance $17,000, and utilities $15,000. Actual fixed overhead costs were the same as monthly budgeted fixed costs. Instructions: 1. Prepare a monthly flexible manufacturing overhead budget for the expected range of acvity, using increments of 1,000 direct labor hours. 2 Preare a flexible budget report for Glenda for the month of July and provide possible reasons for the difference between the budgeted amount and the actual amount.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 4R

See similar textbooks

Similar questions

Professional labor cost budget Based on the data in Exercise 13-5 and assuming that the average compensation per hour for staff is $36 and for partners is $300. prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31. 20Y6. Use the following column headings:
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: Required: Prepare a performance report for the period. 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: Required: 1. Prepare an overhead budget for the expected activity level for the coming year. 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products) and a budget for production that is 20 percent lower than expected.
Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
Factory overhead cost budget Nutty Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only factory fixed costs.
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.