View Policies Current Attempt in Progress Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes $89,280 73,440 26,040 21,360 22,440 $232,560 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $169,092 80,520 40,260 60,390 40,260 $390,522 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During October, 22,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) VAUGHN COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020
View Policies Current Attempt in Progress Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes $89,280 73,440 26,040 21,360 22,440 $232,560 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $169,092 80,520 40,260 60,390 40,260 $390,522 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During October, 22,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) VAUGHN COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020
Chapter1: Financial Statements And Business Decisions
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:View Policies
Current Attempt in Progress
Vaughn Company estimates that 402,600 direct labor hours will be worked during the coming year, 2020, in the Packaging
Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.
Fixed Overhead Costs
Supervision
Depreciation
Insurance
Rent
Property taxes
$89,280
73,440
26,040
21,360
22,440
$232,560
Variable Overhead Costs
Indirect labor
Indirect materials
Repairs
Utilities
Lubricants
$169,092
80,520
40,260
60,390
40,260
$390,522
It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours.
During October, 22,800 direct labor hours were worked and the following overhead costs were incurred.
Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870.
Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640.
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range
for the year ending December 31, 2020. (List variable costs before fixed costs.)
VAUGHN COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2020
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