Your answer is partially correct. Bumblebee Company estimates that 385,800 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 $91.080 74,520 4,840 22,560 17,880 $230,880 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $185,184 100,308 61,728 57,870 30,864 $435,954 It is estimated that direct labor hours worked each month will range from 28,700 to 39,200 hours. During October, 28,700 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1.490. Variable overhead costs: Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2.596.
Your answer is partially correct. Bumblebee Company estimates that 385,800 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 $91.080 74,520 4,840 22,560 17,880 $230,880 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants $185,184 100,308 61,728 57,870 30,864 $435,954 It is estimated that direct labor hours worked each month will range from 28,700 to 39,200 hours. During October, 28,700 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1.490. Variable overhead costs: Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2.596.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Your answer is partially correct.
Bumblebee Company estimates that 385,800 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
$91.080
74,520
4,840
17,880
Variable Overhead Costs
$230,880
Indirect labor
Indirect materials
22,560 Utilities
Repairs
Lubricants
$185,184
100,308
61,728
57,870
30,864
$435,954
It is estimated that direct labor hours worked each month will range from 28.700 to 39,200 hours.
During October, 28,700 direct labor hours were worked and the following overhead costs were incurred.
Fixed overhead costs: Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1,490.
Variable overhead costs: Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2.596.
Transcribed Image Text:(b) Prepare a flexible budget report for October. (List variable costs before fixed costs)
Activity Level
bed Costs
Varlable Costs
Indirect Labor.
Indirect Materials
Repairs
Utilities
xed Costs
Total Variable Costs
Supervision
V
Depreciation
Y
Budget
28700
13776
7462
BUMBLEBEE COMPANY
Packaging Department
Manufacturing Overhead Flexible Budget Report
For the Month Ended October 31, 2020
4592
4305
2296
32431
7590
6210
2070
Actual Costs
28700
JOO!!!
14756
7042
4532
4725
2596
33651
7590
6210
2015
DOO LOOOOO
-1220
-980
-420
-300
Ut
Neith
nor
D
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