costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.20 0.60 0.30 Variable Costs Indirect labor Indirect materials Utilities acturing Fixed overhead costs per month are Supervision $3,600, Depreciation $1,200, and Property Taxes $800. The company believes it will normally operate in a range of 8,500-14,200 direct labor hours per month. Assume that in July 2020, Swifty Company incurs the following manufacturing overhead costs. Fixed Costs $14,510 Supervision 7,180 Depreciation 3,260 Property taxes overhead $3,600 1,200 800 a) Prepare a flexible budget performance report, assuming that the company worked 12,300 direct labor hours during the month. (List variable cosete before fixed costs)
costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.20 0.60 0.30 Variable Costs Indirect labor Indirect materials Utilities acturing Fixed overhead costs per month are Supervision $3,600, Depreciation $1,200, and Property Taxes $800. The company believes it will normally operate in a range of 8,500-14,200 direct labor hours per month. Assume that in July 2020, Swifty Company incurs the following manufacturing overhead costs. Fixed Costs $14,510 Supervision 7,180 Depreciation 3,260 Property taxes overhead $3,600 1,200 800 a) Prepare a flexible budget performance report, assuming that the company worked 12,300 direct labor hours during the month. (List variable cosete before fixed costs)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Budget
SWIFTY COMPANY
Manufacturing Overhead Flexible Budget Report
For the Month Ended July 31, 2020
Actual Costs
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
$
Differ
Transcribed Image Text:Swifty 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
$1.20
0.60
0.30
Fixed overhead costs per month are Supervision $3,600, Depreciation $1,200, and Property Taxes $800. The company believes it will
normally operate in a range of 8,500-14,200 direct labor hours per month.
Assume that in July 2020, Swifty Company incurs the following manufacturing overhead costs.
Variable Costs
Indirect labor
Indirect materials
Utilities
Fixed Costs
Supervision
$14,510
7,180 Depreciation
3,260
Property taxes
$3,600
1,200
800
(a) Prepare a flexible budget performance report, assuming that the company worked 12,300 direct labor hours during the month. (List
variable costs before fixed costs.)
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