In: Accounting
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.
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 |