Wiki Wiki Company has determined that the variable overhead rate is $4.30 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 10,000 hours for the month. Fixed costs are budgeted at $69,000 for the month. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Prepare a monthly factory overhead flexible budget for 9,500, 10,000, and 10,500 hours of production. Wiki Wiki Company Monthly Factory Overhead Cost Budget - Fabrication Department Direct labor hours 9,500 10,000 10,500 Variable factory overhead cost $ $ $ Fixed factory overhead cost Total factory overhead cost $ $ $ How much overhead would be applied to production if 9,500 hours were used in the department during the month? Round your answer to the nearest dollar. $
Master Budget
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.
Sales Budget and Selling
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.
Wiki Wiki Company has determined that the variable
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
-
Prepare a monthly factory overhead flexible budget for 9,500, 10,000, and 10,500 hours of production.
Wiki Wiki Company Monthly Factory Overhead Cost Budget - Fabrication DepartmentDirect labor hours 9,500 10,000 10,500 Variable factory overhead cost $ $ $ Fixed factory overhead cost Total factory overhead cost $ $ $ -
How much overhead would be applied to production if 9,500 hours were used in the department during the month? Round your answer to the nearest dollar.
$
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