Budget for january, Variable costs: Indirect Material (5 TL per DL hour) 5,000 Indirect Labor (4 TL per DL hour) 4,000 Maintenance (1 TL per DL hour) 1,000 Utilities (0,5 TL per DL hour) 500 10,500 Fixed costs: Supervisory 2,000 Depreciation 2,000 Rent 1,000 Insurance 500 5,500 Total MOH Costs 16,000 Red Rose Company planned to produce 4,000 boxes of Red Rose Delights in January 2022. Each box require minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (prese above). Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variabl overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL Supervisor can control all costs other than supervisory, depreciation and insurance. Prepare a flexible manufacturing overhead budget with 200 DL-hour increments. The rele ange is 200 D L bours and 1200 DI be urs

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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VIOH BUuget Tor jahuary, 2022
Variable costs:
Indirect Material (5 TL per DL hour)
5,000
Indirect Labor (4 TL per DL hour)
4,000
Maintenance (1 TL per DL hour)
1,000
Utilities (0,5 TL per DL hour)
500
10,500
Fixed costs:
Supervisory
2,000
Depreciation
2,000
Rent
1,000
Insurance
500
5,500
Total MOH Costs
16,000
Red Rose Company planned to produce 4,000 boxes of Red Rose Delights in January 2022. Each box requires 15
minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (presented
above).
Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variable
overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL.
Supervisor can control all costs other than supervisory, depreciation and insurance.
Prepare a flexible manufacturing overhead budget with 200 DL-hour increments. The relevant
range is 800 DL hours and 1,200 DL hours.
Transcribed Image Text:VIOH BUuget Tor jahuary, 2022 Variable costs: Indirect Material (5 TL per DL hour) 5,000 Indirect Labor (4 TL per DL hour) 4,000 Maintenance (1 TL per DL hour) 1,000 Utilities (0,5 TL per DL hour) 500 10,500 Fixed costs: Supervisory 2,000 Depreciation 2,000 Rent 1,000 Insurance 500 5,500 Total MOH Costs 16,000 Red Rose Company planned to produce 4,000 boxes of Red Rose Delights in January 2022. Each box requires 15 minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (presented above). Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variable overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL. Supervisor can control all costs other than supervisory, depreciation and insurance. Prepare a flexible manufacturing overhead budget with 200 DL-hour increments. The relevant range is 800 DL hours and 1,200 DL hours.
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