Question

In: Accounting

Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:

Variable overhead costs:
   Indirect factory labor $180,000
   Power and light 12,000
   Indirect materials 64,000
      Total variable overhead cost $256,000
Fixed overhead costs:
   Supervisory salaries $ 80,000
   Depreciation of plant and equipment 50,000
   Insurance and property taxes 32,000
      Total fixed overhead cost 162,000
Total factory overhead cost $418,000

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours 18,000 20,000 22,000
Variable overhead costs:
Indirect factory labor $ $ $
Power and light
Indirect materials
Total variable factory overhead $ $ $
Fixed factory overhead costs:
Supervisory salaries $ $ $
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead $ $ $
Total factory overhead $ $ $

Solutions

Expert Solution

Solution

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours 18,000 20,000 22,000
Variable overhead cost:
Indirect factory labor $   57,600.00 $   64,000.00 $   70,400.00
Power and light $   10,800.00 $   12,000.00 $   13,200.00
Indirect materials $   57,600.00 $   64,000.00 $   70,400.00
Total variable factory overhead $ 126,000.00 $ 140,000.00 $ 154,000.00
Fixed factory overhead cost:
Supervisory salaries $   80,000.00 $   80,000.00 $   80,000.00
Depreciation of plant and equipment $   50,000.00 $   50,000.00 $   50,000.00
Insurance and property taxes $   32,000.00 $   32,000.00 $   32,000.00
Total fixed factory overhead $ 162,000.00 $ 162,000.00 $ 162,000.00
Total factory overhead cost $ 288,000.00 $ 302,000.00 $ 316,000.00

Working

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours 18000 20000 22000
Variable overhead cost:
Indirect factory labor =64000/20000*18000 =64000/20000*20000 =64000/20000*22000
Power and light =+(12000)/20000*18000 =+(12000)/20000*20000 =+(12000)/20000*22000
Indirect materials =+(64000)/20000*18000 =+(64000)/20000*20000 =+(64000)/20000*22000

Related Solutions

Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 18,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $165,600    Power and light 5,760    Indirect materials 46,800       Total variable overhead cost $218,160 Fixed overhead cost:    Supervisory salaries $76,360    Depreciation of plant and equipment 48,000    Insurance and property taxes 30,540       Total fixed overhead cost 154,900 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $76,500    Power and light 2,790    Indirect materials 21,600       Total variable overhead cost $100,890 Fixed overhead cost:    Supervisory salaries $35,310    Depreciation of plant and equipment 22,200    Insurance and property taxes 14,120       Total fixed overhead cost 71,630 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 14,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $133,000    Power and light 6,440    Indirect materials 30,800       Total variable overhead cost $170,240 Fixed overhead cost:    Supervisory salaries $59,580    Depreciation of plant and equipment 37,450    Insurance and property taxes 23,830       Total fixed overhead cost 120,860 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 13,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $122,200    Power and light 4,160    Indirect materials 35,100       Total variable overhead cost $161,460 Fixed overhead cost:    Supervisory salaries $56,510    Depreciation of plant and equipment 35,520    Insurance and property taxes 22,600       Total fixed overhead cost 114,630 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 15,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $118,500    Power and light 6,900    Indirect materials 42,000       Total variable overhead cost $167,400 Fixed overhead costs:    Supervisory salaries $58,590    Depreciation of plant and equipment 36,830    Insurance and property taxes 23,440       Total fixed overhead cost 118,860 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 10,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $87,000    Power and light 4,400    Indirect materials 31,000       Total variable overhead cost $122,400 Fixed overhead cost:    Supervisory salaries $42,840    Depreciation of plant and equipment 26,930    Insurance and property taxes 17,140       Total fixed overhead cost 86,910 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $87,300    Power and light 3,780    Indirect materials 27,000       Total variable overhead cost $118,080 Fixed overhead costs:    Supervisory salaries $41,330    Depreciation of plant and equipment 25,980    Insurance and property taxes 16,530       Total fixed overhead cost 83,840 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 10,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $86,000    Power and light 4,100    Indirect materials 31,000       Total variable overhead cost $121,100 Fixed overhead cost:    Supervisory salaries $42,390    Depreciation of plant and equipment 26,640    Insurance and property taxes 16,950       Total fixed overhead cost 85,980 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 11,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $95,700    Power and light 3,850    Indirect materials 27,500       Total variable overhead cost $127,050 Fixed overhead costs:    Supervisory salaries $44,470    Depreciation of plant and equipment 27,950    Insurance and property taxes 17,790       Total fixed overhead cost 90,210 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 13,000 hours of productive capacity in the department: Variable overhead cost:    Indirect factory labor $118,300    Power and light 4,030    Indirect materials 32,500       Total variable overhead cost $154,830 Fixed overhead cost:    Supervisory salaries $54,190    Depreciation of plant and equipment 34,060    Insurance and property taxes 21,680       Total fixed overhead cost 109,930 Total factory...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT