Ayayai Company estimates that 240.000 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 Variable Overhead Costs Supervision 576.800 Indirect labor 5100.800 Depreciation 57.600 Indirect materials 72.000 Insurance 24.000 Repairs 55,200 Rent 19.200 Utilities 57.600 Property taxes 14.400 Lubricants 14.400 $192,000 $300.000 It is estimated that direct labor hours worked each month will range from 21.600 to 28.800 hours. During October. 21.600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision 56.400. depreciation 54.800. insurance Sl.968. rent 51.600. and property taxes $1,200. Variable overhead costs: indirect labor $9,945. indirect materials 56.144, repairs 54.880. utilities $5,472. and lubricants $1,536. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,400 direct labor hours over the relevant range for the year ending December 31.2022. (List variable costs before fixed costs.)

Name: Ayayai Company estimates that 240.000 direct labor hours will be worke
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Description: Ayayai Company estimates that 240.000 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

Managerial Accounting: The Cornerstone of Business Decision-Making

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ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

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Problem 18BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

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Ayayai Company estimates that 240.000 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 Variable Overhead Costs

Supervision 576.800 Indirect labor 5100.800

Depreciation 57.600 Indirect materials 72.000

Insurance 24.000 Repairs 55,200

Rent 19.200 Utilities 57.600

Property taxes 14.400 Lubricants 14.400

$192,000 $300.000

It is estimated that direct labor hours worked each month will range from 21.600 to 28.800 hours.

During October. 21.600 direct labor hours were worked, and the following overhead costs were incurred.

Fixed overhead costs: supervision 56.400. depreciation 54.800. insurance Sl.968. rent 51.600. and property taxes $1,200.

Variable overhead costs: indirect labor $9,945. indirect materials 56.144, repairs 54.880. utilities $5,472. and lubricants $1,536.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,400 direct labor hours over the relevant range for the year ending December 31.2022. (List variable costs before fixed costs.)

UT
AYAYAI COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2022
21,600
9,072
6,480
4,968
5,184
1,296
27,000
6,400
4,800
2,400
1,600
1,200
16,400
43,400
69
$
24,000
10,080
7,200
5,520
5.760
1,440
30,000
6,400
4,800
2,400
1,600
1,200
16,400
46,400
69
$
26,400
11,088
7,920
6,072
6,336
1,584
33,000
6,400
4,800
2,400
1,600
1,200
16,400
49,400
60
EA
28,800
12,096
8,640
6,624
6,912
1,728
36,000
6,400
4,800
2,400
1,600
1,200
16,400
52,400

Activity Level
Direct Labor Hours
Variable Costs
Indirect Labor
Indirect Materials
Repairs
Utilities
Lubricants
Total Variable Costs
Fixed Costs
Supervision
Depreciation
Insurance
Rent
Property Taxes
Total Fixed Costs
Total Costs
69
AYAYAI COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2022
21,600
9,072
6,480
4,968
5,184
1,296
27,000
6,400
4,800
2,400
1,600
1,200
16,400
43,400
69
24,000
10,080
7,200
5,520
5,760
1,440
30,000
6,400
4,800
2,400
1,600
1,200
16,400
46,400
69
26,400
11,088
7,920
6,072
6,336
1,584
33,000
6,400
4,800
2,400
1,600
1,200
16,400
49,400

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