Bramble Company estimates that 384,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision $122,880 Depreciation Insurance Rent Property taxes Variable Overhead Costs Indirect labor 92.160 Indirect materials Repairs Utilities 38,400 30,720 23.040 $307.200 Lubricants $161.280 115,200 88,320 92.160 23.040 $480,000 It is estimated that direct labor hours worked each month will range from 33.600 to 48,000 hours. During October, 33,600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision $10,240, depreciation $7,680, insurance $3,144, rent $2,560, and property taxes $1.920. Variable overhead costs: indirect labor $15,897, indirect materials $9,840, repairs $7,562, utilities $8.736, and lubricants $2.448. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 4,800 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.)
Bramble Company estimates that 384,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision $122,880 Depreciation Insurance Rent Property taxes Variable Overhead Costs Indirect labor 92.160 Indirect materials Repairs Utilities 38,400 30,720 23.040 $307.200 Lubricants $161.280 115,200 88,320 92.160 23.040 $480,000 It is estimated that direct labor hours worked each month will range from 33.600 to 48,000 hours. During October, 33,600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision $10,240, depreciation $7,680, insurance $3,144, rent $2,560, and property taxes $1.920. Variable overhead costs: indirect labor $15,897, indirect materials $9,840, repairs $7,562, utilities $8.736, and lubricants $2.448. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 4,800 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.)
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Transcribed Image Text:Bramble Company estimates that 384,000 direct labor hours will be worked during the coming year, 2022, in the Packaging
Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.
Fixed Overhead Costs
Supervision $122,880
Depreciation
92.160
Insurance
38,400 Repairs
30,720
23,040
$307.200
Rent
Property taxes
Variable Overhead Costs
$161.280
115,200
88,320
92.160
23,040
$480,000
Indirect labor
Indirect materials
Utilities
Lubricants
It is estimated that direct labor hours worked each month will range from 33.600 to 48,000 hours.
During October, 33,600 direct labor hours were worked, and the following overhead costs were incurred.
Fixed overhead costs: supervision $10,240, depreciation $7,680, insurance $3,144, rent $2,560, and property taxes $1.920.
Variable overhead costs: indirect labor $15,897, indirect materials $9,840, repairs $7,562, utilities $8,736, and lubricants $2,448.
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 4,800 direct labor hours over the relevant range
for the year ending December 31, 2022. (List variable costs before fixed costs.)
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