Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown Company Machining Department Monthly Production Budget Wages Utilities $426,000 23,000 38,000 $487,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced May 71,000 June 64,000 July 58,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of 487,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Depreciation Total $459,000 434,000 416,000 Wages per hour Utility cost per direct labor hour Direct labor hours per unit Planned monthly unit production $22.00 $1.20 0.25 77,000

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Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.60 per direct labor hour. Fixed overhead is budgeted at $2,580 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: January February March Total Total direct labor hrs Variable overhead rate Total variable overhead $4 Add: Fixed overhead Total overhead

Monthly budgeted fixed overhead cost?

Static budget versus flexible budget: The I'm just started digging a production supervisor of the machine department for hanger town company agree to the following monthly static budget for the upcoming year. Hanger town machine Department monthly production budget, Wages- $570,000, utilities- 39,000, depreciation- 65,000 total 674,000 2196 the actual amount spent and the actual units produce in the first three months in the machines Department were as follow. May- amount spent $636,000 unit produced 55,000 June- 607,000 unit produced 50,000 July- 579,000 unit produced 45,000 The machine Department supervisor has been very pleased with his this performance because actual extra Dentures for May through July have been significantly Imagine lyrics less than the monthly static budget of 674,000. However the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of the work that it is produced in the machine Department.…

Part #6: H Company’s Direct Labor Budget indicates the number of direct labor hours to be used in July, August, and September are 21,000 and 18,900 and 23,000 respectively. Variable overhead is expected to be $0.90 per direct labor hour. Fixed overhead per month is expected to be $8,200. Prepare an Overhead Budget with columns for July, August, September, and Total 3rd Quarter.

Direct Labor Cost Budget Hours required for assembly: Pasadena Candle Inc. budgeted production of 45,000 candles for January. Each candle requires molding. Assume that 15 minutes are required to mold each candle. If molding labor costs $12 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Candles Convert minutes to hours Molding hours Hourly rate Total direct labor cost -1. ÷ X $ r=&inprogress=false $ min. min. ✩✩ = ☆ hrs. Previous Next Upda