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Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100.000 indirect labor 152.000 Utilities 68.000 Patent royalties on secret process 296.000 Total variable overhead $616.000 Fixed costs: Supervisory salanes 160.000 Depreciation on factory equipment 144.000 Factory taxes Factory insurance Utilities (base charge) Trtal fived overhead 48.000 32.000 80.000 464.000

Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100.000 indirect labor 152.000 Utilities 68.000 Patent royalties on secret process 296.000 Total variable overhead $616.000 Fixed costs: Supervisory salanes 160.000 Depreciation on factory equipment 144.000 Factory taxes Factory insurance Utilities (base charge) Trtal fived overhead 48.000 32.000 80.000 464.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Using a flexible budgeting approach how do I prepare a performance report for the passion department for April 2016, compare an actual overhead cost for 4600 hours. Separate overhead cost into variable and fixed components and show the amounts of any variances between actual budgeted amounts. 

Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities (base charge) 80,000 Total fixed overhead 464,000 $1,080,000 Total manufacturing overhead The polishing department was operated for 4,600 hours during April and incurred the following manufacturing overhead costs: Factory supplies $97,520 Indirect labor 136,160 Utilities (usage factor) 82,800 Utilities (base factor) 96,000 Patent royalties 280,416 Supervisory salaries Depreciation on factory equipment 168,000 144,000 56,000 Factory taxes 32,000 Factory insurance Total manufacturing overhead incurred $1,092,896 Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,600 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your varlance answers. Taylor Manufacturing Company Beliching Denart ment 7:41 PM
Transcribed Image Text:Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities (base charge) 80,000 Total fixed overhead 464,000 $1,080,000 Total manufacturing overhead The polishing department was operated for 4,600 hours during April and incurred the following manufacturing overhead costs: Factory supplies $97,520 Indirect labor 136,160 Utilities (usage factor) 82,800 Utilities (base factor) 96,000 Patent royalties 280,416 Supervisory salaries Depreciation on factory equipment 168,000 144,000 56,000 Factory taxes 32,000 Factory insurance Total manufacturing overhead incurred $1,092,896 Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,600 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your varlance answers. Taylor Manufacturing Company Beliching Denart ment 7:41 PM
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