View Policies Current Attempt in Progress Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes $89,280 73,440 26,040 21,360 22,440 $232,560 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $169,092 80,520 40,260 60,390 40,260 $390,522 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During October, 22,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) VAUGHN COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020
View Policies Current Attempt in Progress Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes $89,280 73,440 26,040 21,360 22,440 $232,560 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $169,092 80,520 40,260 60,390 40,260 $390,522 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During October, 22,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) VAUGHN COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020
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
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Transcribed Image Text:View Policies
Current Attempt in Progress
Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging
Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.
Fixed Overhead Costs
Supervision
Depreciation
Insurance
Rent
Property taxes
$89,280
73,440
26,040
21,360
22,440
$232,560
Variable Overhead Costs
Indirect labor
Indirect materials
Repairs
Utilities
Lubricants
$169,092
80,520
40,260
60,390
40,260
$390,522
It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours.
During October, 22,800 direct labor hours were worked and the following overhead costs were incurred.
Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870.
Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640.
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range
for the year ending December 31, 2020. (List variable costs before fixed costs.)
VAUGHN COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2020
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