The factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, Learn Co has not separated costs in this manner. After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount. Learn Co Factory Overhead Cost Budget For the Year Ending December 31, 20Y2 Indirect factory wages Power and light Depreciation of plant and equipment Total factory overhead cost $5,400 1,450 $18,100

The factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, Learn Co has not separated costs in this manner. After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount. Learn Co Factory Overhead Cost Budget For the Year Ending December 31, 20Y2 Indirect factory wages Power and light Depreciation of plant and equipment Total factory overhead cost $5,400 1,450 $18,100

Name: Accounting Capstone - Master Budget Factory Overhead Cost BudgetThe fa
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Description: Accounting Capstone - Master Budget Factory Overhead Cost BudgetThe factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may besupported by departmental

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 14E: Factory overhead cost budget Sweet Tooth Candy Company budgeted the following costs for anticipated...

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The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table. Required: 1. Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours. (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar.) Use this rate to predict overhead for each of the 12 months. 2. Run a regression equation using only machine hours as the independent variable. Prepare a flexible budget for overhead for the 12 months using the results of this regression equation. (Round the intercept and x-coefficient to the nearest cent and predicted overhead to the nearest dollar.) Is this flexible budget better than the budget in Requirement 1? Why or why not?
A moving, 12-month budget that is updated monthly is a. not used by manufacturing firms. b. a waste of time and effort. c. a master budget. d. a continuous budget. e. always used by firms that prepare a master budget.
Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar. Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 Deluxe abacus 0.10 0.20 Labor hourly rate: Gluing $13 Assembly $19 Units to be…
Preparing a Flexible Budget for Performance Reporting Suppose you receive the following performance report from the accounting department for your first month as plant manager for a new company. Your supervisor, the vice president of manufacturing, has concerns that the report does not provide an accurate picture of your performance in the area of cost control.
Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget? Multiple Choice The Manufacturing Overhead Budget Is prepared after the Sales Budget. J ○ The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead. О The Manufacturing Overhead Budget provides a schedule of all costs of production other than direct materials and labor costs О The Manufacturing Overhead Budget shows the expected cash disbursements for manufacturing overhead.
The direct labor budget shows the direct labor-hours required to satisfy the production budget. True or False In the manufacturing overhead budget, the non-cash charges (such as depreciation) are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead. True or False The manufacturing overhead budget lists all costs of production other than direct materials and direct labor. True or False the selling and administrative expense budget lists all costs of production other than direct materials and direct labor. True or False The budgeted variable selling, and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. True or False Waste on the production line will result in an unfavorable materials price variance. True or False Material price variances are often isolated at the time…
Bramble Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows. BRAMBLE COMPANYBudget ReportAssembling DepartmentFor the Month Ended August 31, 2020 Difference Manufacturing Costs Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Variable costs Direct materials $51,240 $50,240 $1,000 Favorable Direct labor 59,780 56,680 3,100 Favorable Indirect materials 25,620 25,920 300 Unfavorable Indirect labor 19,520 19,090 430 Favorable Utilities 15,250 15,080 170 Favorable Maintenance 12,200 12,400 200 Unfavorable Total variable 183,610 179,410 4,200 Favorable Fixed costs Rent 11,800 11,800 –0– Neither Favorable nor Unfavorable Supervision 19,000 19,000 –0– Neither Favorable nor Unfavorable Depreciation 7,500 7,500 –0– Neither Favorable nor Unfavorable…
Bramble Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows. BRAMBLE COMPANYBudget ReportAssembling DepartmentFor the Month Ended August 31, 2020 Difference Manufacturing Costs Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Variable costs Direct materials $51,240 $50,240 $1,000 Favorable Direct labor 59,780 56,680 3,100 Favorable Indirect materials 25,620 25,920 300 Unfavorable Indirect labor 19,520 19,090 430 Favorable Utilities 15,250 15,080 170 Favorable Maintenance 12,200 12,400 200 Unfavorable Total variable 183,610 179,410 4,200 Favorable Fixed costs Rent 11,800 11,800 –0– Neither Favorable nor Unfavorable Supervision 19,000 19,000 –0– Neither Favorable nor Unfavorable Depreciation 7,500 7,500 –0– Neither Favorable nor Unfavorable…
Please answer with explaination and tell me why others are incorrect ___________________________ may be used to determine the impact of changing production on fixed and variable factory overhead costs. zero-based budget flexible budget continuous budget factory overhead budget
Flexible Budgets, Overhead Cost Variances, and Management Control Fixed manufacturing overhead variance analysis The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. The Sourdough Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. The following is some budget data for the Sourdough Bread Company for 2017. Direct manufacturing labor use 0.02 hours per baguette Fixed manufacturing overhead $3.00 per direct manufacturing labor-hour The following is additional information for the Sourdough Bread Company for the year ended December 31, 2017: Planned (budgeted) output 3,100,000 baguettes Actual production 2,600,000 baguettes Budgeted direct manufacturing labor 62,000 hours Actual direct manufacturing labor…
Flexible Budgets, Overhead Cost Variances, and Management Control Fixed manufacturing overhead variance analysis The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. The Sourdough Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. The following is some budget data for the Sourdough Bread Company for 2017. Direct manufacturing labor use 0.02 hours per baguette Fixed manufacturing overhead $3.00 per direct manufacturing labor-hour The following is additional information for the Sourdough Bread Company for the year ended December 31, 2017: Planned (budgeted) output 3,100,000 baguettes Actual production 2,600,000 baguettes Budgeted direct manufacturing labor 62,000 hours Actual direct manufacturing labor…
In the book Advanced Managerial Accounting, Robert P. Magee discusses monitoring cost variances. A cost variance is the difference between a budgeted cost and an actual cost. Magee describes the following situation: Michael Bitner has responsibility for control of two manufacturing processes. Every week he receives a cost variance report for each of the two processes, broken down by labor costs, materials costs, and so on. One of the two processes, which we'll call process A , involves a stable, easily controlled production process with a little fluctuation in variances. Process B involves more random events: the equipment is more sensitive and prone to breakdown, the raw material prices fluctuate more, and so on. "It seems like I'm spending more of my time with process B than with process A," says Michael Bitner. "Yet I know that the probability of an inefficiency developing and the expected costs of inefficiencies are the same for the two processes. It's just the magnitude of…