Current Attempt in Progress Lily 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 0.70 0.20 Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $700. The company believes it will normally operate in a range of 8,100-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1.300 direct labor hours. (List variable costs before fixed costs.) LILY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020
Current Attempt in Progress Lily 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 0.70 0.20 Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $700. The company believes it will normally operate in a range of 8,100-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1.300 direct labor hours. (List variable costs before fixed costs.) LILY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020
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:Current Attempt in Progress
Lily 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
0.70
0.20
Fixed overhead costs per month are Supervision $4,300, Depreciation $2.000, and Property Taxes $700. The company believes it will
normally operate in a range of 8,100-12,000 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments
of 1.300 direct labor hours. (List variable costs before fixed costs.)
LILY COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the Year 2020
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