Culver Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.00 Variable Costs Indirect labor Indirect materials Budgeted fixed overhead costs per month are Supervision $4,640, Depreciation $1,392, and property Taxes $928. The company believes it will normally operate in a range of 8,120-11.600 direct labor hours per month. Assume that in July 2022, Culver Company incurs the following manufacturing overhead costs. Utilities 0,70 0.40 Fixed Costs Supervision Depreciation $10,208 6,728 3,712 Property taxes $4,640 1.392 928 (a) Prepare a flexible budget performance report, assuming that the company worked 10,440 direct labor hours during the month. (List variable costs before fixed costs.)
Culver Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.00 Variable Costs Indirect labor Indirect materials Budgeted fixed overhead costs per month are Supervision $4,640, Depreciation $1,392, and property Taxes $928. The company believes it will normally operate in a range of 8,120-11.600 direct labor hours per month. Assume that in July 2022, Culver Company incurs the following manufacturing overhead costs. Utilities 0,70 0.40 Fixed Costs Supervision Depreciation $10,208 6,728 3,712 Property taxes $4,640 1.392 928 (a) Prepare a flexible budget performance report, assuming that the company worked 10,440 direct labor hours during the month. (List variable costs before fixed 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:Culver Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing
overhead costs per direct labor hour are as follows.
Indirect labor
Indirect materials
Utilities
$1.00
0.70
Budgeted fixed overhead costs per month are Supervision $4,640, Depreciation $1,392, and property Taxes $928. The company
believes it will normally operate in a range of 8,120-11.600 direct labor hours per month.
Assume that in July 2022, Culver Company incurs the following manufacturing overhead costs.
Variable Costs
Indirect labor
Indirect materials
Utilities
0.40
$10,208
Fixed Costs
Supervision
Depreciation
6,728
3,712 Property taxes
$4,640
1,392
928
(a) Prepare a flexible budget performance report, assuming that the company worked 10,440 direct labor hours during the month.
(List variable costs before fixed costs.)
CULVER COMPANY
Manufacturing Overhead Flexible Budget Report
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