Shawke Company's partially completed flexible overhead budget for the current period follows. This budget is based on its predicted activity of 50% of productive capacity. Complete its flexible overhead budgets for the current period using 1,200, 2,400, and 3,600 units of productive capacity. For Year Ended December 31 Production (in units) Overhead costs Total variable overhead Total fixed overhead Total overhead costs Flexible Overhead Budgets Total Fixed Cost Variable Amount per Unit $ 12 $ 16,400 Flexible Budget at Capacity Level of 25% 50% 75% 1,200 2,400 3,600

Shawke Company's partially completed flexible overhead budget for the current period follows. This budget is based on its predicted activity of 50% of productive capacity. Complete its flexible overhead budgets for the current period using 1,200, 2,400, and 3,600 units of productive capacity. For Year Ended December 31 Production (in units) Overhead costs Total variable overhead Total fixed overhead Total overhead costs Flexible Overhead Budgets Total Fixed Cost Variable Amount per Unit $ 12 $ 16,400 Flexible Budget at Capacity Level of 25% 50% 75% 1,200 2,400 3,600

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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Draw up a flexible budget for overheadexpenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor 12,000 Stores including spares 4,000 Semi-variable Overheads: Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) 20,000 2,000 Fixed Overheads: Depreciation 11,000 3,000 10,000 62,000 1,24,000 hrs. Insurance Salaries Total Overheads Estimated direct labor hours
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Prepare the production-overhead budget (in dollars) for 20x0.
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