Pronghorn Company estimates that 312,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $99,840 Indirect labor $131,040 Depreciation 74,880 Indirect materials 93,600 Insurance 31,200 Repairs 71,760 Rent 24,960 Utilities 74,880 Property taxes 18,720 Lubricants 18,720 $249,600 $390,000 It is estimated that direct labor hours worked each month will range from 27,600 to 38,400 hours. During October, 27,600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision $8,320, depreciation $6,240, insurance $2,556, rent $2,080, and property taxes $1,560. Variable overhead costs: indirect labor $12,921, indirect materials $7,992, repairs $6,242, utilities $7,104, and lubricants $1,992. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,600 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.)

Pronghorn Company estimates that 312,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $99,840 Indirect labor $131,040 Depreciation 74,880 Indirect materials 93,600 Insurance 31,200 Repairs 71,760 Rent 24,960 Utilities 74,880 Property taxes 18,720 Lubricants 18,720 $249,600 $390,000 It is estimated that direct labor hours worked each month will range from 27,600 to 38,400 hours. During October, 27,600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision $8,320, depreciation $6,240, insurance $2,556, rent $2,080, and property taxes $1,560. Variable overhead costs: indirect labor $12,921, indirect materials $7,992, repairs $6,242, utilities $7,104, and lubricants $1,992. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,600 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.)

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Description: Pronghorn Company estimates that 312,000 direct labor hours will be worked during the coming year, 2022, in the PackagingDepartment. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.Fixed Overhead Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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