Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department: Variable overhead cost:        Indirect factory labor $65,700      Power and light 3,420      Indirect materials 29,700         Total variable overhead cost   $98,820 Fixed overhead cost:        Supervisory salaries $34,590      Depreciation of plant and equipment 21,740      Insurance and property taxes 13,830         Total fixed overhead cost   70,160 Total factory overhead cost   $168,980 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4PA: Factory overhead cost variance report Tiger Equipment Inc., a manufacturer of construction...
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Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Variable overhead cost:    
   Indirect factory labor $65,700  
   Power and light 3,420  
   Indirect materials 29,700  
      Total variable overhead cost   $98,820
Fixed overhead cost:    
   Supervisory salaries $34,590  
   Depreciation of plant and equipment 21,740  
   Insurance and property taxes 13,830  
      Total fixed overhead cost   70,160
Total factory overhead cost   $168,980

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours
7,000
9,000
11,000
Variable overhead cost:
Indirect factory labor
$4
$
Power and light
Indirect materials
Total variable factory overhead
2$
Fixed factory overhead cost:
Supervisory salaries
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead
Total factory overhead cost
%24
Transcribed Image Text:Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 7,000 9,000 11,000 Variable overhead cost: Indirect factory labor $4 $ Power and light Indirect materials Total variable factory overhead 2$ Fixed factory overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead Total factory overhead cost %24
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