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In: Accounting

The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a...

The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a range of 20,000 to 40,000 machine-hours.

Overhead Costs Cost Formula
utilities $20,600 plus $0.10 per machine-hour
maintenance $40,000 plus $1.60 per machine-hour
supplies $0.30 per machine-hour
indirect labor $130,000 plus $0.70 per machine-hour
depreciation $70,000

Required:

Prepare a flexable manufacturing overhead budget assuming a budgeted level of activity of 30,000 machine-hours. Include all costs in your flexable budget.

Per Unit Total
Variable Costs: _________ _________
total variable costs
Fixed Costs: _________
Total Fixed Costs

Calculate the predetermined overhead rate.

Predetermined overhead rate = ________________

Calculate the variable portion of the predetermined overhead rate.

Variable portion of the predetermined overhead rate = ______________

Calculate the fixed portion of the predetermined overhead rate.

fixed portion of the predetermined overhead rate = ______________

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ekkarill92 answered 1 year ago
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