Crane Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable 122,400Direct Labor Hours $612,000 122,400 61,200 795,600

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Chapter1: Financial Statements And Business Decisions
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Activity level
Direct labor hours
Variable Costs
Indirect Labor
Indirect Materials
Factory Supplies
Total Variable Costs ✓
Fixed Costs
Depreciation
Supervision
CRANECO.
Monthly Flexible Manufacturing Overhead Budget
Property Taxes
Total Fixed Costs
Total Costs
$
LA
$
LA
10,400
52000
10400
5200
67600
22000
12000
10000
44000
111600
tA
tA
11,400
57000
11400
5700
74100
22000
12000
10000
44000
118100
Transcribed Image Text:Activity level Direct labor hours Variable Costs Indirect Labor Indirect Materials Factory Supplies Total Variable Costs ✓ Fixed Costs Depreciation Supervision CRANECO. Monthly Flexible Manufacturing Overhead Budget Property Taxes Total Fixed Costs Total Costs $ LA $ LA 10,400 52000 10400 5200 67600 22000 12000 10000 44000 111600 tA tA 11,400 57000 11400 5700 74100 22000 12000 10000 44000 118100
Crane Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows:
Expected annual operating capacity
Variable overhead costs
Indirect labor
Indirect materials
Factory supplies
Fixed overhead costs
Depreciation
Supervision
Property taxes
Total costs
Total variable
Total fixed
122,400Direct
Labor Hours
$612,000
122,400
61,200
795,600
264,000
144,000
120,000
528,000
$1,323,600
The relevant range for monthly activity is expected to be between 10,400 and 12,000 direct labor hours.
Prepare a flexible budget for a monthly activity level of 10,400 and 11,400 direct labor hours. (List variable costs before fixed costs.)
Transcribed Image Text:Crane Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Fixed overhead costs Depreciation Supervision Property taxes Total costs Total variable Total fixed 122,400Direct Labor Hours $612,000 122,400 61,200 795,600 264,000 144,000 120,000 528,000 $1,323,600 The relevant range for monthly activity is expected to be between 10,400 and 12,000 direct labor hours. Prepare a flexible budget for a monthly activity level of 10,400 and 11,400 direct labor hours. (List variable costs before fixed costs.)
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