FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Grouper Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary
|
Variable costs
|
Rate per Direct
Labor Hour |
Annual Fixed Costs
|
||||
|---|---|---|---|---|---|---|
|
Indirect labor
|
$0.43 |
Supervision
|
$44,880 | |||
|
Indirect materials
|
0.52 |
|
18,000 | |||
|
Factory utilities
|
0.30 |
Insurance
|
17,880 | |||
|
Factory repairs
|
0.20 |
Rent
|
28,680 |
The
Variable—per direct labor hour: indirect labor $0.45, indirect materials $0.50, factory utilities $0.33, and factory repairs $0.24.
Fixed: same as budgeted.
Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 43,700 to 57,200 direct labor hours. Dear increments of 4,500 direct labor hours. Also, prepare a budget report for June comparing actual results with budget data based on the flexible budget.
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