Question

In: Accounting

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Indirect labor $1.10
Indirect materials 0.50
Utilities 0.40


Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,900–9,800 direct labor hours per month.

Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

Variable Costs

Fixed Costs
Indirect labor $9,050 Supervision $3,900
Indirect materials 4,070 Depreciation 1,100
Utilities 2,990 Property taxes 700


(a) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month and prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month.. (List variable costs before fixed costs.)

Solutions

Expert Solution

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.20 Indirect materials 0.80 Utilities 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,000–13,700 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $1.00 Indirect materials 0.50 Utilities 0.30 Fixed overhead costs per month are Supervision $4,400, Depreciation $1,100, and Property Taxes $900. The company believes it will normally operate in a range of 7,500–10,500 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $ 1.10 Indirect materials 0.50 Utilities 0.40 Fixed overhead costs per month are Supervision $ 3,900 , Depreciation $ 1,100 , and Property Taxes $ 700 . The company believes it will normally operate in a range of 5,900 – 9,800 direct labor hours per month. Assume that in July 2017, Myers Company...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $ 1.00 Indirect materials 0.50 Utilities 0.30 Fixed overhead costs per month are Supervision $ 3,500 , Depreciation $ 1,000 , and Property Taxes $ 500 . The company believes it will normally operate in a range of 5,500 – 8,500 direct labor hours per month. Assume that in July 2017, Myers Company...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,200, and Property Taxes $800. The company believes it will normally operate in a range of 7,000–10,000 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
Exercise 22-4 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours....
Exercise 22-4 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.80 Utilities 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,300, and Property Taxes $800. The company believes it will normally operate in a range of 7,600–10,600 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable...
Exercise 10-4 a-b (Video) Myers Company uses a flexible budget for manufacturing overhead based on direct...
Exercise 10-4 a-b (Video) Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4,100, Depreciation $2,000, and Property Taxes $500. The company believes it will normally operate in a range of 7,100–12,800 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead...
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor...
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,600 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,100 per month, which includes depreciation of $3,660. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $61,300 $18,200 $57,640...
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the...
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2018, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 401. Job stats...
A manufacturing company applies factory overhead based on direct labor hours.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 47,000. The entry to apply the factory overhead costs for the year would include aa. debit to factory overhead for $377,200.b. debit to factory overhead for $360,000.c. credit to factory overhead for $376,000.d. credit to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT