I am struggling to find a few of the answers. Flexible Budget Application The cutting department of Liberty Manufacturing Company operated during September 2016 with the following manufacturing overhead cost budget based on 6,000 hours of monthly productive capacity: Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 Variable costs: Factory supplies $48,000 Indirect labor 72,000 Utilities (usage charge) 36,000 Patent royalties on secret process 144,000 Total variable overhead $300,000 Fixed costs: Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 40,000 Factory insurance 24,000 Utilities (base charge) 32,000 Total fixed overhead 332,000 Total manufacturing overhead $632,000 The cutting department was operated for 5,460 hours during September and incurred the following manufacturing overhead costs: Factory supplies $40,800 Indirect labor 67,600 Utilities (usage factor) 38,100 Utilities (base factor) 32,000 Patent royalties 134,400 Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 43,800 Factory insurance 27,000 Total manufacturing overhead incurred $619,700 Using a flexible budgeting approach, prepare a performance report for the cutting department for September 2016, comparing actual overhead costs with budgeted overhead costs for 5,460 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 variance answers.
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.
I am struggling to find a few of the answers.
Flexible Budget Application
The cutting department of Liberty Manufacturing Company operated during September 2016 with the following
| Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 |
|||||
|---|---|---|---|---|---|
| Variable costs: | |||||
| Factory supplies | $48,000 | ||||
| Indirect labor | 72,000 | ||||
| Utilities (usage charge) | 36,000 | ||||
| Patent royalties on secret process | 144,000 | ||||
| Total variable overhead | $300,000 | ||||
| Fixed costs: | |||||
| Supervisory salaries | 96,000 | ||||
| 140,000 | |||||
| Factory taxes | 40,000 | ||||
| Factory insurance | 24,000 | ||||
| Utilities (base charge) | 32,000 | ||||
| Total fixed overhead | 332,000 | ||||
| Total manufacturing overhead | $632,000 |
The cutting department was operated for 5,460 hours during September and incurred the following manufacturing overhead costs:
| Factory supplies | $40,800 | |||
| Indirect labor | 67,600 | |||
| Utilities (usage factor) | 38,100 | |||
| Utilities (base factor) | 32,000 | |||
| Patent royalties | 134,400 | |||
| Supervisory salaries | 96,000 | |||
| Depreciation on factory equipment | 140,000 | |||
| Factory taxes | 43,800 | |||
| Factory insurance | 27,000 | |||
| Total manufacturing overhead incurred | $619,700 |
Using a flexible budgeting approach, prepare a performance report for the cutting department for September 2016, comparing actual overhead costs with budgeted overhead costs for 5,460 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 variance answers.
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