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 9,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $75,600 Power and light 3,780 Indirect materials 25,200 Total variable overhead cost $104,580 Fixed overhead cost: Supervisory salaries $36,600 Depreciation of plant and equipment 23,010 Insurance and property taxes 1
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 cost: | ||
| Indirect factory labor | $75,600 | |
| Power and light | 3,780 | |
| Indirect materials | 25,200 | |
| Total variable overhead cost | $104,580 | |
| Fixed overhead cost: | ||
| Supervisory salaries | $36,600 | |
| |
23,010 | |
| Insurance and property taxes | 14,640 | |
| Total fixed overhead cost | 74,250 | |
| Total factory overhead cost | $178,830 |
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 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.
Leno Manufacturing CompanyFactory Overhead Cost Budget-Press DepartmentFor the Month Ended November 30
| Direct labor hours | 7,000 | 9,000 | 11,000 |
| Variable overhead cost: | |||
| Indirect factory labor | $fill in the blank | $fill in the blank | $fill in the blank |
| Power and light | fill in the blank | fill in the blank | fill in the blank |
| Indirect materials | fill in the blank | fill in the blank | fill in the blank |
| Total variable factory overhead | $fill in the blank | $fill in the blank | $fill in the blank |
| Fixed factory overhead cost: | |||
| Supervisory salaries | $fill in the blank | $fill in the blank | $fill in the blank |
| Depreciation of plant and equipment | fill in the blank | fill in the blank | fill in the blank |
| Insurance and property taxes | fill in the blank | fill in the blank | fill in the blank |
| Total fixed factory overhead | $fill in the blank | $fill in the blank | $fill in the blank |
| Total factory overhead cost | $fill in the blank | $fill in the blank | $fill in the blank |
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