Blossom, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials Maintenance Utilities Fixed overhead costs per month are: Supervision Insurance Property taxes Depreciation $5.00 2.50 0.50 0.30 $1,320 520 720 1,960 The company believes it will normally operate in a range of 5,200 to 9,200 machine hours per month. During the month of August, 2022, the company incurs the following manufacturing overhead costs: Indirect labor $33,840 Indirect materials 19,440 Maintenance 3,360 Utilities 2,280 Supervision 1,620 Insurance 520 Property taxes 720 Depreciation 2,100 Prepare a flexible budget report, assuming that the company used 7,200 machine hours during August. (List variable costs before fixed costs.) GA > > > > BLOSSOM, INC. Manufacturing Overhead Budget Report (Flexible) For the Month Ended August 31, 2022 Budget at 7,200hrs. $ $ Actual at 7,200hrs. Difference Favorable (F) Unfavorable (U) Not Applicable (NA) $ $ $
Blossom, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials Maintenance Utilities Fixed overhead costs per month are: Supervision Insurance Property taxes Depreciation $5.00 2.50 0.50 0.30 $1,320 520 720 1,960 The company believes it will normally operate in a range of 5,200 to 9,200 machine hours per month. During the month of August, 2022, the company incurs the following manufacturing overhead costs: Indirect labor $33,840 Indirect materials 19,440 Maintenance 3,360 Utilities 2,280 Supervision 1,620 Insurance 520 Property taxes 720 Depreciation 2,100 Prepare a flexible budget report, assuming that the company used 7,200 machine hours during August. (List variable costs before fixed costs.) GA > > > > BLOSSOM, INC. Manufacturing Overhead Budget Report (Flexible) For the Month Ended August 31, 2022 Budget at 7,200hrs. $ $ Actual at 7,200hrs. Difference Favorable (F) Unfavorable (U) Not Applicable (NA) $ $ $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
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