Chapter $10$ Assignment

Question $9$ of $15$

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Pronghorn Company estimates that $312,000$ direct labor hours will be worked during the coming year, $2027,$ in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

$\backslash$table$[[$Fixed Overhead Costs,Variable Overhead Costs$],[$Supervision$,$$$99,840,$Indirect labor,$$131,040],[$Depreciation$,74,880,$Indirect materials,$93,600],[$Insurance$,31,200,$Repairs,$71,760],[$Rent$,24,960,$Utilities,$74,880],[$Property taxes,$18,720,$Lubricants,$18,720],[$$ $249,600,,$$$390,000]]$

It is estimated that direct labor hours worked each month will range from $27,600$ to $38,400$ hours.

During October, $27,600$ direct labor hours were worked, and the following overhead costs were incurred.

Fixed overhead costs: supervision $$8,320,$ depreciation $$6,240,$ insurance $$2,556,$ rent $$2,080,$ and property taxes $$1,560.$

Variable overhead costs: indirect labor $$12,921,$ indirect materials $$7,992,$ repairs $$6,242,$ utilities $$7,104,$ and lubricants $$1,992.$

$($a$)$ Prepare a monthly manufacturing overhead flexible budget for each increment of $3,600$ direct labor hours over the relevant range for the year ending December $31,2027.($List variable costs before fixed costs.$)$

PRONGHORN COMPANY

Packaging Department

Monthly Manufacturing Overhead Flexible Budget

For the Year $2027$