Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor $180,000 Power and light 12,000 Indirect materials 64,000 Total variable overhead $256,000 cost Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment $ 80,000 50,000 Insurance and property 32,000 taxes Total fixed overhead cost Total factory overhead cost 162,000 $418,000 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Line Item Description Direct labor hours Variable overhead costs: Indirect factory labor Power and light Amount 18,000 X Indirect materials Total variable factory overhead cost $ x $ Amount 20,000 Amount 22,000
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor $180,000 Power and light 12,000 Indirect materials 64,000 Total variable overhead $256,000 cost Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment $ 80,000 50,000 Insurance and property 32,000 taxes Total fixed overhead cost Total factory overhead cost 162,000 $418,000 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Line Item Description Direct labor hours Variable overhead costs: Indirect factory labor Power and light Amount 18,000 X Indirect materials Total variable factory overhead cost $ x $ Amount 20,000 Amount 22,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for
October of the current year, during which it expected to require 20,000 hours of productive capacity in the
department:
Variable overhead costs:
Indirect factory labor
$180,000
Power and light
12,000
Indirect materials
64,000
Total variable overhead
$256,000
cost
Fixed overhead costs:
Supervisory salaries
Depreciation of plant and
equipment
$ 80,000
50,000
Insurance and property
32,000
taxes
Total fixed overhead
cost
Total factory overhead cost
162,000
$418,000
Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead
cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all
amounts as positive numbers. Round your interim computations to the nearest cent, if required.
Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Line Item Description
Direct labor hours
Variable overhead costs:
Indirect factory labor
Power and light
Amount
18,000
X
Indirect materials
Total variable factory overhead cost $
x $
Amount
20,000
Amount
22,000
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