Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor $180,000 Power and light 12,000 Indirect materials 64,000 Total variable overhead cost $256,000 Fixed overhead costs: Supervisory salaries $ 80,000 Depreciation of plant and equipment 50,000 Insurance and property taxes 32,000 Total fixed overhead cost 162,000 Total factory overhead cost $418,000 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 18,000 20,000 22,000 Variable overhead costs: Indirect factory labor $ $ $ Power and light Indirect materials Total variable factory overhead $ $ $ Fixed factory overhead costs: Supervisory salaries $ $ $ Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead $ $ $ Total factory overhead $ $ $
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.
Flexible
Leno Manufacturing Company prepared the following
| Variable overhead costs: | ||
| Indirect factory labor | $180,000 | |
| Power and light | 12,000 | |
| Indirect materials | 64,000 | |
| Total variable overhead cost | $256,000 | |
| Fixed overhead costs: | ||
| Supervisory salaries | $ 80,000 | |
| |
50,000 | |
| Insurance and property taxes | 32,000 | |
| Total fixed overhead cost | 162,000 | |
| Total factory overhead cost | $418,000 |
Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.
| Leno Manufacturing Company | |||
| Factory Overhead Cost Budget-Press Department | |||
| For the Month Ended November 30 | |||
| Direct labor hours | 18,000 | 20,000 | 22,000 |
| Variable overhead costs: | |||
| Indirect factory labor | $ | $ | $ |
| Power and light | |||
| Indirect materials | |||
| Total variable factory overhead | $ | $ | $ |
| Fixed factory overhead costs: | |||
| Supervisory salaries | $ | $ | $ |
| Depreciation of plant and equipment | |||
| Insurance and property taxes | |||
| Total fixed factory overhead | $ | $ | $ |
| Total factory overhead | $ | $ | $ |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
