problem 10-A

Problem 10-1A Bumblebee Company estimates that 315,600 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year. Fixed overhead costs Varia e ove Costs $88,800 Indirect labor $145,176 Supervision 70,080 Indirect materials Depreciation 69,432 29,040 Repairs 31,560 Insurance 25,440 Utilities 63,120 Property taxes 21,840 Lubricants 15,780 S235,200 $325,068 It is estimated that direct labor hours worked each month will range from 25,700 to 32,000 hours. During October, 25,700 direct labor hours were worked and the folowing overhead costs were incurred. Fixed overhead costs: Supervision s7,400, Depreciation $5,840, Insurance s2,380, Rent s2,120, and Property taxes si,820. Variable overhead costs Indirect labor $12.792, Indirect materials, $5,234, Repairs $2,520, Utilities $5,450, and Lubricants s1,575. (a) prepare a monthly manufacturing overhead flexible budget for each increment of 2,100 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing overhead Hexible Budget For the Year 2017