Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $1.20 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $800. The company believes it will normally operate in a range of 6,200-11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,800 direct labor hours. (List variable costs before fixed costs.)
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $1.20 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $800. The company believes it will normally operate in a range of 6,200-11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,800 direct labor hours. (List variable costs before fixed costs.)
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...
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