Bumblebee Company estimates that 318,000 direct labor hours will be worked during the coming year, 2020,...

Bumblebee Company estimates that 318,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs		Variable Overhead Costs
Supervision	$93,960	Indirect labor	$152,640
Depreciation	69,120	Indirect materials	89,040
Insurance	30,720	Repairs	31,800
Rent	20,760	Utilities	47,700
Property taxes	13,440	Lubricants	15,900
	$228,000		$337,080

It is estimated that direct labor hours worked each month will range from 22,500 to 33,900 hours.

During October, 22,500 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,830, Depreciation $5,760, Insurance $2,510, Rent $1,730, and Property taxes $1,120.

Variable overhead costs: Indirect labor $11,890, Indirect materials, $5,920, Repairs $2,170, Utilities $3,775, and Lubricants $1,415.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,800 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

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ekkarill92 answered 1 year ago

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