Prepare flexible budget and budget report for manufacturing overhead         Bumblebee Company estimates that 300,000 direct labor hours will be worked during  the coming year, 2020,     in the Packaging Department.  On this basis, the budgeted manufacturing overhead cost data, shown below,      are computed for the year.                                           Fixed Overhead Costs   Variable Overhead Costs           Supervision $96,000   Indirect labor   $126,000           Depreciation          72,000   Indirect materials                  90,000           Insurance          30,000   Repairs                  69,000           Rent          24,000   Utilities                  72,000           Property taxes          18,000   Lubricants                  18,000             $240,000       $375,000                               It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours.     During October 27,000 direct labor hours were worked and the following overhead costs were incurred.       Fixed overhead costs:  supervision $8,000, depreciation $6,000, insurance $2,460, rent $2,000,       and property taxes $1,500.                   Variable overhead costs: indirect labor $12,432, indirect materials $7,680, repairs $6,100,         utilities $6,840, and lubricants $1,920.                                     Instructions                   (a)  Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor             hours over the relevant range for the year ending December 31, 2020.         (b)  Prepare a flexible budget report for October.               (c )  Comment on management's efficiency in controlling manufacturing overhead costs in October.     NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .                                                                     (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor       hours over the relevant range for the year ending December 31, 2020.                                 BUMBLEBEE COMPANY   Packaging Department   Monthly Manufacturing Overhead Flexible Budget   For the Year 2020   Activity level                          Direct labor hours   27,000   30,000   33,000   36,000                         Variable costs                          Indirect labor ($0.42)    ?     ?     ?     ?         Indirect materials ($0.30)    ?     ?     ?     ?         Repairs ($0.23)      ?     ?     ?     ?         Utilities ($0.24)      ?     ?     ?     ?         Lubricants ($0.06)    ?     ?     ?     ?              Total variable costs ($1.25)    ?     ?     ?     ?                          Fixed costs                          Supervision          ?     ?     ?     ?         Depreciation      ?     ?     ?     ?         Insurance      ?     ?     ?     ?         Rent      ?     ?     ?     ?         Property taxes      ?     ?     ?     ?               Total fixed costs    ?     ?     ?     ?                          Total costs      ?     ?     ?     ?                                              (b)   Prepare a flexible budget report for October.                                     BUMBLEBEE COMPANY   Packaging Department   Manufacturing Overhead Flexible Budget Report   For the Month Ended October 31, 2020                 Difference             Budget at   Actual Costs   Favorable F       Direct labor hours     27,000 DLH   27,000 DLH   Unfavorable U       Variable costs                          Indirect labor ($0.42)   ?   Value   ?            Indirect materials ($0.30)   ?   Value   ?            Repairs ($0.23)     ?   Value   ?            Utilities ($0.24)     ?   Value   ?            Lubricants ($0.06)   ?   Value   ?                 Total variable costs ($1.25)   ?   ?   ?                             Fixed costs                          Supervision         Value   Value   ?            Depreciation     Value   Value   ?            Insurance     Value   Value   ?            Rent     Value   Value   ?            Property taxes     Value   Value   ?                  Total fixed costs   ?   ?   ?                             Total costs     ?   ?   ?                                                 (c)    Comment on management's efficiency in controlling manufacturing overhead costs in October.                                                             After you have completed P23-1A consider the following additional question.         1.  Assume that during October, the actual direct labor hours worked changed to 27,500 hours.       In addition, actual variable overhead costs incurred for indirect labor and indirect materials         also changed to $13,500 and $8,200 respectively.  Revise the flexible budget report for         October

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P23-1A  Prepare flexible budget and budget report for manufacturing overhead        
Bumblebee Company estimates that 300,000 direct labor hours will be worked during  the coming year, 2020,    
in the Packaging Department.  On this basis, the budgeted manufacturing overhead cost data, shown below,     
are computed for the year.                  
                     
  Fixed Overhead Costs   Variable Overhead Costs        
  Supervision $96,000   Indirect labor   $126,000        
  Depreciation          72,000   Indirect materials                  90,000        
  Insurance          30,000   Repairs                  69,000        
  Rent          24,000   Utilities                  72,000        
  Property taxes          18,000   Lubricants                  18,000        
    $240,000       $375,000        
                     
It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours.    
During October 27,000 direct labor hours were worked and the following overhead costs were incurred.    
  Fixed overhead costs:  supervision $8,000, depreciation $6,000, insurance $2,460, rent $2,000,    
  and property taxes $1,500.                
  Variable overhead costs: indirect labor $12,432, indirect materials $7,680, repairs $6,100,      
  utilities $6,840, and lubricants $1,920.              
                     
Instructions                  
(a)  Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor    
        hours over the relevant range for the year ending December 31, 2020.        
(b)  Prepare a flexible budget report for October.              
(c )  Comment on management's efficiency in controlling manufacturing overhead costs in October.    
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .  
                     
                     
                     
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor    
  hours over the relevant range for the year ending December 31, 2020.        
                     
  BUMBLEBEE COMPANY
  Packaging Department
  Monthly Manufacturing Overhead Flexible Budget
  For the Year 2020
  Activity level                  
       Direct labor hours   27,000   30,000   33,000   36,000
                     
  Variable costs                  
       Indirect labor ($0.42)    ?     ?     ?     ? 
       Indirect materials ($0.30)    ?     ?     ?     ? 
       Repairs ($0.23)      ?     ?     ?     ? 
       Utilities ($0.24)      ?     ?     ?     ? 
       Lubricants ($0.06)    ?     ?     ?     ? 
            Total variable costs ($1.25)    ?     ?     ?     ? 
                     
  Fixed costs                  
       Supervision          ?     ?     ?     ? 
       Depreciation      ?     ?     ?     ? 
       Insurance      ?     ?     ?     ? 
       Rent      ?     ?     ?     ? 
       Property taxes      ?     ?     ?     ? 
             Total fixed costs    ?     ?     ?     ? 
                     
  Total costs      ?     ?     ?     ? 
                     
                     
(b)   Prepare a flexible budget report for October.            
                     
  BUMBLEBEE COMPANY
  Packaging Department
  Manufacturing Overhead Flexible Budget Report
  For the Month Ended October 31, 2020
                Difference    
        Budget at   Actual Costs   Favorable F    
  Direct labor hours     27,000 DLH   27,000 DLH   Unfavorable U    
  Variable costs                  
       Indirect labor ($0.42)   ?   Value   ?    
       Indirect materials ($0.30)   ?   Value   ?    
       Repairs ($0.23)     ?   Value   ?    
       Utilities ($0.24)     ?   Value   ?    
       Lubricants ($0.06)   ?   Value   ?    
            Total variable costs ($1.25)   ?   ?   ?    
                     
  Fixed costs                  
       Supervision         Value   Value   ?    
       Depreciation     Value   Value   ?    
       Insurance     Value   Value   ?    
       Rent     Value   Value   ?    
       Property taxes     Value   Value   ?    
             Total fixed costs   ?   ?   ?    
                     
  Total costs     ?   ?   ?    
                     
                     
(c)    Comment on management's efficiency in controlling manufacturing overhead costs in October.    
 
 
     
 
 
   
   
   
   
   
                     
After you have completed P23-1A consider the following additional question.        
1.  Assume that during October, the actual direct labor hours worked changed to 27,500 hours.    
  In addition, actual variable overhead costs incurred for indirect labor and indirect materials      
  also changed to $13,500 and $8,200 respectively.  Revise the flexible budget report for      
  October.                  
                     
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