Avayal 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 Utilities Fixed overhead costs per month are Supervision $4,960, Depreciation $1,488, and property Taxes $992. The company believes it will normally operate in a range of 8,680-12.400 direct labor hours per month Assume that in July 2025, Ayayai Company incurs the following manufacturing overhead costs Variable Costs Indirect labor $1.00 0.70 0.40 Indirect materials Utilities Fixed Costs $10.912 Supervision 7,192 Depreciation 3,968 Property taxes $4,960 1,488 992 (a) Prepare a flexible budget performance report, assuming that the company worked 11.160 direct labor hours during the month (List variable costs before fixed costs)
Avayal 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 Utilities Fixed overhead costs per month are Supervision $4,960, Depreciation $1,488, and property Taxes $992. The company believes it will normally operate in a range of 8,680-12.400 direct labor hours per month Assume that in July 2025, Ayayai Company incurs the following manufacturing overhead costs Variable Costs Indirect labor $1.00 0.70 0.40 Indirect materials Utilities Fixed Costs $10.912 Supervision 7,192 Depreciation 3,968 Property taxes $4,960 1,488 992 (a) Prepare a flexible budget performance report, assuming that the company worked 11.160 direct labor hours during the month (List variable costs before fixed costs)
Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter10: Standard Costing And Variance Analysis
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Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Ayayai 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
Utilities
$1.00
Indirect labor
Indirect materials
Utilities
Fixed overhead costs per month are Supervision $4,960, Depreciation $1,488, and property Taxes $992. The company believes it will
normally operate in a range of 8,680-12.400 direct labor hours per month.
Assume that in July 2025, Ayayai Company incurs the following manufacturing overhead costs.
Variable Costs
0.70
0,40
$10.912
Fixed Costs
Supervision
7.192 Depreciation
3,968 Property taxes
$4,960
1,488
992
(a) Prepare a flexible budget performance report, assuming that the company worked 11.160 direct labor hours during the month. (List
variable costs before fixed costs)
Transcribed Image Text:(b) Prepare a flexible budget performance report, assuming that the company worked 10,540 direct labor hours during the month. (List
variable costs before fixed costs.)
Budget
AYAYAI COMPANY
Manufacturing Overhead Flexible Budget Report
Actual Costs
Differenc
Favorabl
Unfavoral
Neither Favo
nor Unfavor
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