Myers 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 $1.40 Indirect materials 0.70 Utilities 0.20 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,100, and Property Taxes $600. The company believes it will normally operate in a range of 7,400–10,400 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,000 direct labor hours. (List variable costs before fixed costs.)
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.
Myers Company uses a flexible budget for manufacturing
| Indirect labor | $1.40 | |
| Indirect materials | 0.70 | |
| Utilities | 0.20 |
Fixed overhead costs per month are Supervision $3,700,
Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,000 direct labor hours. (List variable costs before fixed costs.)
|
MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget For the Year 2020 |
||||||||
|---|---|---|---|---|---|---|---|---|
|
Select an opening overhead flexible budget item
|
||||||||
|
Select a flexible overhead budget item
|
Enter a number
|
Enter a number
|
Enter a number
|
Enter a number
|
||||
|
Select an opening name for section one
|
||||||||
|
Select a flexible overhead budget item
|
$Enter a dollar amount
|
$Enter a dollar amount
|
$Enter a dollar amount
|
$Enter a dollar amount
|
||||
|
Select a flexible overhead budget item
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
||||
|
Select a flexible overhead budget item
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
||||
|
Select a closing name for section one
|
Enter a total amount for section one
|
Enter a total amount for section one
|
Enter a total amount for section one
|
Enter a total amount for section one
|
||||
|
Select an opening name for section two
|
||||||||
|
Select a flexible overhead budget item
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
||||
|
Select a flexible overhead budget item
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
||||
|
Select a flexible overhead budget item
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
Enter a dollar amount
|
||||
|
Select a closing name for section two
|
Enter a total amount for section two
|
Enter a total amount for section two
|
Enter a total amount for section two
|
Enter a total amount for section two
|
||||
|
Select a closing overhead flexible budget item
|
$Enter a total dollar amount
|
$Enter a total dollar amount
|
$Enter a total dollar amount
|
$Enter a total dollar amount
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
