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 Indirect materials Utilities $1.30 0.80 0.30 Fixed overhead costs per month are Supervision $4,400, Depreciation $1,200, and Property Taxes $600. The company believes it wil normally operate in a range of 7,200-10,200 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.)
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 Indirect materials Utilities $1.30 0.80 0.30 Fixed overhead costs per month are Supervision $4,400, Depreciation $1,200, and Property Taxes $600. The company believes it wil normally operate in a range of 7,200-10,200 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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
Indirect materials
Utilities
$1.30
0.80
0.30
Fixed overhead costs per month are Supervision $4,400, Depreciation $1,200, and Property Taxes $600. The company believes it will
normally operate in a range of 7,200-10,200 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments
of 1,000 direct labor hours. (List variable costs before fixed costs.)
Transcribed Image Text:$
$
MYERS COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the Year 2020
$
$
$
$
$
$
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