Questions 39-40 refer to the following: The Minard company uses the following condensed flexible budget for manufacturing overhead: Variable overhead $5.80 per direct labor hour Budgeted fixed overhead $420,000 per year At an activity level of 600,000 direct labor hours per year, the budgeted total manufacturing overhead cost would be: Multiple Choice O O O $3,840,000 $3,900,000 $1,020,000 O $420,000

Questions 39-40 refer to the following: The Minard company uses the following condensed flexible budget for manufacturing overhead: Variable overhead $5.80 per direct labor hour Budgeted fixed overhead $420,000 per year At an activity level of 600,000 direct labor hours per year, the budgeted total manufacturing overhead cost would be: Multiple Choice O O O $3,840,000 $3,900,000 $1,020,000 O $420,000

Name: QQuestions 39-40 refer to the following:The Minard company uses the f
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Description: QQuestions 39-40 refer to the following:The Minard company uses the following condensed flexible budget for manufacturing overhead:Variable overhead $5.80 per direct labor hourBudgeted fixed overhead $420,000 per yearAt an activity level of 600,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EB: Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per...

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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.
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Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of 6 per unit of fixed overhead and 4 per unit of variable overhead. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of 2,500. Actual overhead for the month was 110,000 and actual units produced were 13,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production.
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Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of 12,000 per year per unit Six welding employees each paid a salary of 50,000 per year (A total of 9,000 welding hours are supplied by the six workers.) Welding supplies: 300 per job Welding hours: Three hours used per job During the year, the activity operated at 90 percent of capacity and incurred the actual activity and resource costs, shown on page 676. Lease cost: 48,000 Salaries: 315,000 Parts and supplies: 805,000 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. 2. Prepare a performance report for the welding activity. 3. What if welders were hired through outsourcing and paid 30 per hour (the welding equipment is provided by Foy)? Repeat Requirement 1 for the outsourcing case.