There Are 2 Parts To This Question A And B 1 (52.21 KiB) Viewed 28 times
Monty Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Budgeted fixed overhead costs per month are Supervision $3.920, Depreciation $1,176, and property Taxes $784. The company believes it will normally operate in a range of 6,860-9,800 direct labor hours per month Assume that in July 2022, Monty Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8.624 Supervision $3.920 Indirect materials 5.684 Depreciation 1,176 Utilities 3.136 Property taxes 784 (a) Prepare a flexible budget performance report, assuming that the company worked 8,820 direct labor hours during the month. (List variable costs before fixed costs.) MONTY COMPANY Manufacturing Overhead Flexible Budget Report For the Year Ended July 31, 2022 Differen Favorat Unfavora Neither Fav nor Unfavc Budget Actual Costs Direct Labor Hours Variable Costs Indirect Materials $ $ $ Indirect Labor Utilities Total Variable Costs Fixed Costs Supervision Depreciation V Property Taxes Total Fixed Costs V Total Costs $ $
(b) Prepare a flexible budget performance report, assuming that the company worked 8,330 direct labor hours during the month. (List variable costs before fixed costs.) MONTY COMPANY Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $ $ < < > < $ $
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