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: Indirect labor $1.00 Indirect materials 0.70 Utilities 0.20 Fixed overhead costs per month are Supervision $4,100, Depreciation $1,900, and Property Taxes $700. The company believes it will normally operate in a range of 7,300–10,900 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 Select an opening overhead flexible budget item Activity LevelDepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Select an overhead flexible budget item Activity LevelDepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Enter a number Enter a number Enter a number Enter a number Select an opening name for section one Activity LevelDepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a dollar amount Enter a dollar amount Enter a dollar amount Enter a dollar amount Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a dollar amount Enter a dollar amount Enter a dollar amount Enter a dollar amount Select a closing name for section one     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a total amount for section one Enter a total amount for section one Enter a total amount for section one Enter a total amount for section one Select an opening name for section two Activity LevelDepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a dollar amount Enter a dollar amount Enter a dollar amount Enter a dollar amount Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a dollar amount Enter a dollar amount Enter a dollar amount Enter a dollar amount Select an overhead flexible budget item     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a dollar amount Enter a dollar amount Enter a dollar amount Enter a dollar amount Select a closing name for section two     Activity Level    Depreciation    Direct Labor Hours    Fixed Costs    Indirect Labor    Indirect Materials    Property Taxes    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Utilities    Variable Costs     Enter a total amount for section two Enter a total amount for section two Enter a total amount for section two Enter a total amount for section two Select a closing overhead flexible budget item Activity LevelDepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs $Enter a total amount for the overhead flexible budget $Enter a total amount for the overhead flexible budget $Enter a total amount for the overhead flexible budget $Enter a total amount for the overhead flexible budget Click if you would like to Show Work for this question: Open Show Work

Answer 1

Monthly Manufacturing Overhead Flexible Budget
For the Year 2020
Activity level
Direct labor hours	7300	8500	9700	10900
Variable costs
Indirect labor	7300	8500	9700	10900
Indirect materials	5110	5950	6790	7630
Utilities	1460	1700	1940	2180
Total variable cost	13870	16150	18430	20710
Fixed costs
Supervision	4100	4100	4100	4100
Depreciation	1900	1900	1900	1900
Property taxes	700	700	700	700
Total fixed costs	6700	6700	6700	6700
Total costs	20570	22850	25130	27410