Whispering Winds Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours Rate per Direct Labor Hour Variable costs Annual Fixed Costs Indirect labor $0.42 Supervision $44.160 Indirect materials 0.53 Depreciation 18,960 Factory utilities 0.31 Insurance 16,560 Factory repairs 021 Rent 27,720 The master overhead budget was prepared in the expectation that 475,300 direct labor hours will be worked during the year in June, 45,300 direct labor hours were worked. At that leve activity, actual costs were as shown below Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.52. factory utilities $0.34, and factory repairs 10.25

Whispering Winds Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours Rate per Direct Labor Hour Variable costs Annual Fixed Costs Indirect labor $0.42 Supervision $44.160 Indirect materials 0.53 Depreciation 18,960 Factory utilities 0.31 Insurance 16,560 Factory repairs 021 Rent 27,720 The master overhead budget was prepared in the expectation that 475,300 direct labor hours will be worked during the year in June, 45,300 direct labor hours were worked. At that leve activity, actual costs were as shown below Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.52. factory utilities $0.34, and factory repairs 10.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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