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 14,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $102,200 Power and light 3,920 Indirect materials 32,200 Total variable overhead cost $138,320 Fixed overhead cost: Supervisory salaries $48,410 Depreciation of plant and equipment 30,430 Insurance and property taxes 19,360 Total fixed overhead cost 98,200 Total factory overhead cost $236,520 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 12,000, 14,000, and 16,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 12,000 14,000 16,000 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable factory overhead Fixed factory overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead
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 14,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $102,200 Power and light 3,920 Indirect materials 32,200 Total variable overhead cost $138,320 Fixed overhead cost: Supervisory salaries $48,410 Depreciation of plant and equipment 30,430 Insurance and property taxes 19,360 Total fixed overhead cost 98,200 Total factory overhead cost $236,520 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 12,000, 14,000, and 16,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 12,000 14,000 16,000 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable factory overhead Fixed factory overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text: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 14,000 hours of productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$102,200
Power and light
3,920
Indirect materials
32,200
Total variable overhead cost
$138,320
Fixed overhead cost:
Supervisory salaries
$48,410
Depreciation of plant and equipment
30,430
Insurance and property taxes
19,360
Total fixed overhead cost
98,200
Total factory overhead cost
$236,520
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 12,000, 14,000, and 16,000 hours of production. Round your interim
computations to the nearest cent, if required. Enter all amounts as positive numbers.
Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours
12,000
14,000
16,000
Variable overhead cost:
Indirect factory labor
Power and light
Indirect materials
Total variable factory overhead
Fixed factory overhead cost:
Supervisory salaries
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead
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