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) $ $ $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
$
$
$
Transcribed Image Text: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) $ $ $
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