contestada

Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .50 Utilities .30 Fixed overhead costs per month are: Supervision $1,200 Insurance 400 Property taxes 600 Depreciation 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the company incurs the following manufacturing overhead costs: Indirect labor $28,000 Indirect materials 16,200 Maintenance 2,800 Utilities 1,900 Supervision 1,440 Insurance 400 Property taxes 600 Depreciation 1,860 Prepare a flexible budget report, assuming that the company used 6,000 machine hours during August.

Respuesta :

jepessoa

Answer:

Variable overhead costs per machine hour:

  • Indirect labor $5.00
  • Indirect materials $2.50
  • Maintenance $0.50
  • Utilities $0.30
  • Total $8.30

Fixed overhead costs:

  • Supervision $1,200
  • Insurance $400
  • Property taxes $600
  • Depreciation $1,800
  • Total $4,000

                                        Flexible              Actual             Spending

                                        budget               expenses        variances

Variable costs:

  • Indirect labor         $30,000             $28,000          $2,000 F
  • Indirect materials  $15,000              $16,200           $1,200 U
  • Maintenance         $3,000                $2,800            $200 F
  • Utilities                   $1,800                $1,900              $100 U
  • Total                       $49,800             $48,900          $900 F

Fixed costs:

  • Supervision           $1,200                 $1,440              $240 U
  • Insurance              $400                   $400                 $0
  • Property taxes      $600                   $600                 $0
  • Depreciation         $1,800                 $1,860              $60 U
  • Total                      $4,000                $4,300              $300 U

Total costs                     $53,800              $52,300           $600 F

Otras preguntas