Question

Exercise 10-3 (Video) Your answer is partially correct. Try again. 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 Indirect materials $1.20 0.60 0.40 Utilities Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $800. The company believes it will normally operate in a range of 6,200-11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,800 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 T Direct Labor Hours 4 6200 8000 9800 11600 Variable Costs Indirect Laber Indirect Labor = 7940 7440 920) 9240 2:00) 11040 12840 1280

Answer 1

MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 6200 8000 9800 11600 Activity Level Direct labor hours Variable Costs Indirect labor Indirect materials Utilities Total Variable Costs Fixed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs 7440 3720 2480 13640 9600 4800 3200 17600 11760 5880 3920 21560 13920 6960 4640 25520 4000 1600 800 6400 20040 4000 1600 800 6400 24000 4000 1600 800 6400 27960 4000 1600 800 6400 31920