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Sunland 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 $1.00 0.70 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,000-13,000 direct labor hours per month. Assume that in July 2020, Sunland Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities 0.40 $10,760 7,520 3,950 Fixed Costs Supervision Depreciation Property taxes $4,200 1,800 600 (a) Prepare a flexible budget performance report, assuming that the company worked 11,000 direct labor hours during the month. (List

Sunland 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 $1.00 0.70 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,000-13,000 direct labor hours per month. Assume that in July 2020, Sunland Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities 0.40 $10,760 7,520 3,950 Fixed Costs Supervision Depreciation Property taxes $4,200 1,800 600 (a) Prepare a flexible budget performance report, assuming that the company worked 11,000 direct labor hours during the month. (List

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sunland 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 $1.00 Variable Costs Indirect labor Indirect materials Utilities 0.70 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,000-13,000 direct labor hours per month. Assume that in July 2020, Sunland Company incurs the following manufacturing overhead costs. 0.40 $10,760 7,520 3,950 Fixed Costs Supervision Depreciation Property taxes $4,200 1,800 600 (a) Prepare a flexible budget performance report, assuming that the company worked 11,000 direct labor hours during the month. (List variable costs before fixed costs.)
Transcribed Image Text:Sunland 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 $1.00 Variable Costs Indirect labor Indirect materials Utilities 0.70 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,000-13,000 direct labor hours per month. Assume that in July 2020, Sunland Company incurs the following manufacturing overhead costs. 0.40 $10,760 7,520 3,950 Fixed Costs Supervision Depreciation Property taxes $4,200 1,800 600 (a) Prepare a flexible budget performance report, assuming that the company worked 11,000 direct labor hours during the month. (List variable costs before fixed costs.)
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