### Educational Content: Myers Company Monthly Manufacturing Overhead Flexible Budget for 2020#### OverviewThe document presented is a template for a flexible budget specifically for monthly manufacturing overhead for Myers Company in the year 2020. This type of budget is crucial for businesses to adjust and evaluate costs in response to varying levels of production or other operational activities.#### Budget CategoriesThe template is organized into several sections, which include dropdown menus and input fields for financial data, indicating flexibility and customization options for different budget categories. These categories are usually predetermined but can be adjusted based on the specific needs and practices of Myers Company.#### Details and Explanation1. **Dropdown Menus**: - There are several dropdown menus on the left side of the template. These are likely used for selecting specific cost categories (e.g., utilities, labor, materials) or months. The exact categories can be predefined or selected as needed.2. **Input Fields**: - Multiple blank input fields are available in rows for entering numerical data, which likely represent costs. These fields offer the flexibility to input or adjust the budgeted amounts for each category or time period.3. **Currency Notation**: - The use of the dollar sign ($) next to certain fields indicates the monetary values related to the company’s manufacturing overhead.4. **Columns**: - The template is divided into columns, probably to represent different months or cost elements. Each column allows the company to track and manage various overhead expenses closely. #### Purpose of a Flexible BudgetFlexible budgets like the one shown are instrumental for:- **Adjusting for Changes**: They help in adjusting for changes in levels of activity or production volumes, providing a more accurate financial picture.- **Management Control**: They are key tools for managerial control, enabling businesses to compare actual expenses against budgeted amounts and identify variances.- **Proactive Planning**: By providing a template for projecting costs under various conditions, the company can be proactive about financial planning and decision-making.This template serves as a framework for Myers Company to manage its financials efficiently and effectively respond to operational variances throughout the year 2020. **Myers Company Flexible Budget Overview****Variable Manufacturing Overhead Costs:**- **Indirect Labor:** $1.20 per direct labor hour- **Indirect Materials:** $0.70 per direct labor hour- **Utilities:** $0.20 per direct labor hour**Fixed Overhead Costs per Month:**- **Supervision:** $3,600- **Depreciation:** $1,300- **Property Taxes:** $800The company operates within a range of 7,100–11,000 direct labor hours per month.**Task:**Prepare a monthly manufacturing overhead flexible budget for 2020 with increments of 1,300 direct labor hours.*Instructions: List variable costs before fixed costs.***Selection Options for Budget Details:**- Activity Level- Depreciation- Direct Labor Hours- Fixed Costs- Indirect Labor- Indirect Materials- Property Taxes- Supervision- Total Costs- Total Fixed Costs- Total Variable Costs- Utilities- Variable CostsThis information guides you in understanding how to allocate costs effectively based on labor hours, which affects budgeting and financial planning for manufacturing activities.

Introduction:- Flexible budget means as follows under:- It adjusts values in respective of changes…

Answered: Prepare a monthly manufacturing…

Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1.300 direct labor hours. (List variable costs before fixed costs.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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Question 1 Green Co. has three production departments Fern, Forest, and Moss and one service department Shade. Green Co. is preparing its annual budget for the final quarter of 2021. Planned overhead costs for the quarter are as follows: Overheads Allocated overheads 40,500 Supervision Plant Depreciation 14,400 20,000 6,000 46,000 Machine Insurance Rates and Rent The following information is available for each department: Departmental details Fern Forest Moss Shade Allocated overhead 11,000 16,500 2,500 9,500 3,500 3,500 1,500 Machine Value (£) Budgeted Direct Labour hours Floor Area Occupied (Sq.metres) Number of employees Plant at cost (£000) 5,000 1,200 600 1,800 1000 3,000 800 200 700 400 40 80 1,845 852 61 142 Of the total overhead costs allocated to the service department Shade, 20% is charged to Forest and the remainder is charged equally to the other two production department. a) Prepare an overhead analysis sheet showing the total overhead cost budgeted for all four…
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Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow: Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of $1's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ P1 P2 $ 2. Production capacity in units 3. Space occupied 4. Five-year average of $1 service used 627,450✔ 845,550✔ 5. Estimated direct overhead costs
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