Chicken Coop Manufacturing, The. master budget for 2023 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed 100,000 Direct Labor Hours $750,000 64,000 28,000 842,000 60,000 115,000 16,000 191,000 $1,033,000 Total costs The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours.
Chicken Coop Manufacturing, The. master budget for 2023 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed 100,000 Direct Labor Hours $750,000 64,000 28,000 842,000 60,000 115,000 16,000 191,000 $1,033,000 Total costs The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : Accounting

Transcribed Image Text:Chicken Coop Manufacturing, Inc. developed its annual manufacturing overhead budget for its
master budget for 2023 as follows:
Expected annual operating capacity
Variable overhead costs
Indirect labor
Indirect materials
Factory supplies
Total variable
Fixed overhead costs
Depreciation
Supervision
Property taxes
Total fixed
Total costs
100,000 Direct Labor Hours
$750,000
64,000
28,000
842,000
60,000
115,000
16,000
191,000
$1,033,000
The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor
hours.
Instructions
Prepare a flexible budget for a monthly activity level of 8,000, 9,000 and 10,000 direct labor
hours.
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