This Website Has Been Moved to a New Link


Loading

E10-4 Using the information in E10-3, assume that in July 2014, Thome

Price: $1.99


Thome Company uses a flexible budget for manufacturing overhead based on direct
labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Indirect labor  1.00
Indirect materials  0.60
Utilities  0.40

Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property
taxes $800.


Variable Costs   Fixed Costs
Indirect labor   8,800 Supervision   4,000
Indirect materials   5,300 Depreciation   1,200
Utilities   3,200 Property taxes   800

Instructions
(a) Prepare a flexible budget performance report, assuming that the company worked
9,000 direct labor hours during the month.
(b) Prepare a flexible budget performance report, assuming that the company worked
8,500 direct labor hours during the month.

No comments:

Post a Comment