Concord 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 $4,200, Depreciation $1.500, and Property Taxes $700. The company believes it will normally operate in a range of 6.700-9,700 direct labor hours per month Assume that in July 2020, Concord Company incurs the following manufacturing overhead costs. $1.10 0.65 0.40 Variable Costs Indirect labor Indirect materials Utilities Fixed Costs $9,370 Supervision 5,040 Depreciation 3,050 Property taxes $4,200 1,500 700 (a) Prepare a flexible budget performance report, assuming that the company worked 8,700 direct labor hours during the month. (List variable costs before bred costs)
Concord 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 $4,200, Depreciation $1.500, and Property Taxes $700. The company believes it will normally operate in a range of 6.700-9,700 direct labor hours per month Assume that in July 2020, Concord Company incurs the following manufacturing overhead costs. $1.10 0.65 0.40 Variable Costs Indirect labor Indirect materials Utilities Fixed Costs $9,370 Supervision 5,040 Depreciation 3,050 Property taxes $4,200 1,500 700 (a) Prepare a flexible budget performance report, assuming that the company worked 8,700 direct labor hours during the month. (List variable costs before bred costs)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Concord 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
$1.10
0.65
0,40
Fixed overhead costs per month are Supervision $4,200, Depreciation $1,500, and Property Taxes $700. The company believes it will
normally operate in a range of 6.700-9,700 direct labor hours per month
Assume that in July 2020, Concord Company incurs the following manufacturing overhead costs
Variable Costs
Indirect labor
Indirect materials
Utilities
Fixed Costs
$9,370 Supervision
5,040
Depreciation
3,050
Property taxes
$4,200
1,500
700
(a) Prepare a flexible budget performance report, assuming that the company worked 8,700 direct labor hours during the month. (List
variable costs before fixed costs.)
Transcribed Image Text:(a) Prepare a flexible budget performance report, assuming that the company worked 8,700 direct labor hours during the month. (List
variable costs before fixed costs.)
Budget
CONCORD COMPANY
Manufacturing Overhead Flexible Budget Report
For the Month Ended July 31, 2020
Budget
Actual Costs
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
(b) Prepare a flexible budget performance report, assuming that the company worked 8,100 direct labor hours during the month. (List
variable costs before fixed costs.)
CONCORD COMPANY
Manufacturing Overhead Flexible Budget Report
For the Month Ended July 31, 2020
Actual Costs
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Difference
$
Difference
E
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