Cody Co. developed its annual manufacturing overhead budget for its master budget for 2016 as follows: Expected
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Question:
Cody Co. developed its annual manufacturing overhead budget for its master budget for 2016 as follows:
Expected annual operating capacity 120,000 Direct Labor Hours
Variable overhead costs
Indirect labor $600,000
Indirect materials 120,000
Factory supplies 60,000
Total variable 780,000
Fixed overhead costs
Depreciation 240,000
Supervision 120,000
Property taxes 96,000
Total fixed 456,000
Total costs $1,236,000
The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours.
Instructions.
Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours
Expert Answer:
flexible buget 120000 cost per 8000 9000 hours hour hours hours Variable overhead ... View the full answer
Related Book For 
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
