The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours: Variable costs: Indirect labor Indirect materials Factory supplies Fixed costs: Depreciation Supervision Property taxes Total overhead costs $48,000 24,000 19,200 $38,400 69,600 36,000 $91,200 144.000 $235,200 If management prepared a flexible budget for July using 54,000 direct labor hours, what would happen to the fixed costs in the budget with 54,000 direct labor hours? Total fixed costs would increase. Total fixed costs would increase by $6,000 because that is the number that direct labor hours increased. Total fixed costs would decrease. The fixed cost amounts wouldn't change.

The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours: Variable costs: Indirect labor Indirect materials Factory supplies Fixed costs: Depreciation Supervision Property taxes Total overhead costs $48,000 24,000 19,200 $38,400 69,600 36,000 $91,200 144.000 $235,200 If management prepared a flexible budget for July using 54,000 direct labor hours, what would happen to the fixed costs in the budget with 54,000 direct labor hours? Total fixed costs would increase. Total fixed costs would increase by $6,000 because that is the number that direct labor hours increased. Total fixed costs would decrease. The fixed cost amounts wouldn't change.

Name: 6The July manufacturing overhead budget of Kyoto Corporation, shown b
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Description: 6The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours:Variable costs:Indirect laborIndirect materialsFactory suppliesFixed costs:DepreciationSupervisionProp

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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