Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:...

Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:

Budgeted number of machine-hours		6,000
Budgeted variable costs:
Supplies (@ $6.90 per machine-hour)	$	41,400
Power (@ $3.70 per machine-hour)		22,200
Budgeted fixed costs:
Salaries		51,600
Equipment depreciation		26,400
Total expense	$	141,600

Required:

Prepare a flexible budget for 6,400 machine-hours per month.

Expert Solution

Flexible Budget Based on 6,400 Machine-Hours
Flexible Budget Based on 6,400 Machine-Hours		Variable overhead costs:
Supplies	$ 44,160.00
Power	$ 23,680.00
Total variable overhead cost	$ 67,840.00
Fixed overhead costs:
Salaries	$ 51,600.00
Equipment depreciation	$ 26,400.00
Total fixed overhead cost	$ 78,000.00
Total overhead cost	$ 145,840.00

ekkarill92 answered 1 year ago

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