The cost formulas for Emory Company's manufacturing overhead costs are given below. T cost formulas cover a relevant range of 15,000 to 25,000 machine-hours each year. Overhead costs Cost formula Utilities £0.30 per machine-hour Indirect labour £52,000 plus £1.40 per machine-hour 0.20 per machine-ho Maintenance £ 18,000 plus £010 per machine-hour Depreciation Required

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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II
E13-2
The cost formulas for Emory Company's manufacturing overhead costs are given below. TE
cost formulas cover a relevant range of 15,000 to 25,000 machine-hours each year.
Overhead costs
Cost formula
Utilities
£0.30 per machine-hour
Indirect labour
£52,000 plus £1.40 per machine-hour
Supplies
020 per machine-houi
Maintenance
E18,000 plus £010 per machine-hour
Depreciation
00006 3
Required
Prepare a flexible budget in inerements of 5,000 machine-hours. Include all costs in your
budget.
a.
Transcribed Image Text:II E13-2 The cost formulas for Emory Company's manufacturing overhead costs are given below. TE cost formulas cover a relevant range of 15,000 to 25,000 machine-hours each year. Overhead costs Cost formula Utilities £0.30 per machine-hour Indirect labour £52,000 plus £1.40 per machine-hour Supplies 020 per machine-houi Maintenance E18,000 plus £010 per machine-hour Depreciation 00006 3 Required Prepare a flexible budget in inerements of 5,000 machine-hours. Include all costs in your budget. a.
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