Question

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.

​​​​​​​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.

$1.40 Indirect labor Indirect materials 0.60 Utilities 0.40 8,200 13,300 direct labor hours Fixed overhead costs per month are Supervision $3,900, Depreciation $1,700, and Property Taxes $600. The company believes it will normally operate in a range per month Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,700 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity Level 9900 8200 Direct Labor Hours 11600 13300 Variable Costs Indirect Labor 8200 11600 13300 0066 Indirect Materials Utilities Total Varlable Costs Fixed Costs Supervision Depreciation х: Property Taxes Total Fixed Costs Total Costs

Answer 1

MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For The Year 2017
Activity level
Direct labor hours	8200	9900	11600	13300
Variable cost
Indirect labor	11,480 (8200*$1.40)	13,860 (9900*$1.40)	16,240 (11600*$1.40)	18,620 (13300*$1.40)
Indirect materials	4,920 (8200*$0.60)	5,400 (9900*$0.60)	6,960 (11600*$0.60)	7,980 (13300*$0.60)
Utilities	3,280 (8200*$0.40)	3,960 (9900*$0.40)	4,640 (11600*$0.40)	5,320 (13300*$0.40)
Total variable costs	19,680	23,220	27,840	31,920
Fixed costs
Supervision	3,900	3,900	3,900	3,900
Depreciation	1,700	1,700	1,700	1,700
Property taxes	600	600	600	600
Total fixed costs	6,200	6,200	6,200	6,200
Total costs	$25,880	$29,420	$34,040	$38,120