Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse P24 1A Malone Company estimates that 360,000 direct labor hours will be worked during the coming year, 2008, in the Packaging Department On this basis, the following budgeted manufacturing overhead cost data are computed for the year Fixed Overhead Costs Variable Overhead Costs Supervision $90,000 Indirect labor $126,000 Depreciation 60,000 Indirect materials 90,000 Insurance 30,000 Repairs 54,000 Rent 24,000 Utilities 72,000 Property taxes 18,000 Lubricants 18,000 $222,000 $360,000 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours During October, 27,000 direct labor hours were worked and the following overhead costs were incurred Fixed Overhead Costs Variable Overhead Costs Supervision $7,500 Indirect labor $10,360 Depreciation 5,000 Indirect materials 6,400 Insurance 2,470 Repairs 4,000 Rent 2,000 Utilities 5,700 Property taxes 1,500 Lubricants 1,640 Instructions (a) Prepare a monthly flexible manufacturing overhead budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2008 MALONE COMPANY Packaging Department Flexible Monthly Manufacturing Overhead Budget For the Year 2008 Activity level Direct labor hours Number Number Number Number Variable costs Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Total variable costs Formula Formula Formula Formula Fixed costs Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Title Amount Amount Amount Amount Total fixed costs Formula Formula Formula Formula Total costs Formula Formula Formula Formula Note that the per hour variable costs are computed by taking the budget amount at 360,000 hours and dividing it by 360,000 For example, indirect labor per hour is therefore $126,000 divided by 360,000 hours or $0 35 per hour (b) Prepare a flexible budget report for October MALONE COMPANY Packaging Department Manufacturing Overhead Budget Report (Flexible) For the Year 2008 Budgeted at Actual Costs Difference Direct labor hours (DLH) Amount Amount Favorable Fav Unfavorable Unf Variable costs DLH DLH Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Total variable costs Formula Formula Formula Fav Unf Fixed costs Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Title Amount Amount Formula Fav Unf Total fixed costs Formula Formula Formula Fav Unf Total costs Formula Formula Formula Fav Unf (c) Comment on management's efficiency in controlling manufacturing overhead costs in October PLEASE FILL IN ANSWERS IN FORMAT I HAVE QUESTION

The Answer is in the image, click to view ...

Question: Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse P24-1A Malone Company estimates that 360,000 direct labor hours will be worked

Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse

P24-1A Malone Company estimates that

360,000

direct labor hours will be worked during the coming

year, 2008, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data

are computed for the year.

Fixed Overhead Costs

Variable Overhead Costs

Supervision

$90,000

Indirect labor

$126,000

Depreciation

60,000

Indirect materials

90,000

Insurance

30,000

Repairs

54,000

Rent

24,000

Utilities

72,000

Property taxes

18,000

Lubricants

18,000

$222,000

$360,000

It is estimated that direct labor hours worked each month will range from

27,000

36,000

hours.

During October,

27,000

direct labor hours were worked and the following overhead costs were incurred.

Fixed Overhead Costs

Variable Overhead Costs

Supervision

$7,500

Indirect labor

$10,360

Depreciation

5,000

Indirect materials

6,400

Insurance

2,470

Repairs

4,000

Rent

2,000

Utilities

5,700

Property taxes

1,500

Lubricants

1,640

Instructions:

(a) Prepare a monthly flexible manufacturing overhead budget for each increment of

3,000

direct

labor hours over the relevant range for the year ending December 31, 2008.

MALONE COMPANY

Packaging Department

Flexible Monthly Manufacturing Overhead Budget

For the Year 2008

Activity level

Direct labor hours

Number

Variable costs*

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Total variable costs

Formula

Fixed costs

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Total fixed costs

Formula

Total costs

Formula

*Note that the per hour variable costs are computed by taking the budget amount at 360,000

hours and dividing it by 360,000. For example, indirect labor per hour is therefore $126,000

divided by 360,000 hours or $0.35 per hour.

(b) Prepare a flexible budget report for October.

MALONE COMPANY

Packaging Department

Manufacturing Overhead Budget Report (Flexible)

For the Year 2008

Budgeted at

Actual Costs

Difference

Direct labor hours (DLH)

Amount

Favorable - Fav Unfavorable - Unf

Variable costs*

DLH

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Total variable costs

Formula

Fav / Unf

Fixed costs

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Title

Amount

Formula

Fav / Unf

Total fixed costs

Formula

Fav / Unf

Total costs

Formula

Fav / Unf

PLEASE FILL IN ANSWERS IN FORMAT I HAVE QUESTION

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Hello, Can you please assist with the following questions? P9-1A ? Prepare budgeted income statement and supporting budgets P10-1A ? Prepare flexible budget and budget report for manufacturing...

Evaluation and Control in Strategic Management Evaluation and control information consists of performance data and activity reports (gathered in Step 3 in Figure 11-1). If undesired performance...

8-1 Discussion: Writing Your Resume Profile For this discussion, you will be writing a professional profile. You will need to find a job posting that interests you and then write the professional...

Use case to answer question only you don't need no other reference. Case Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July,...

case study (sumnary ) Chapter 1 An Investment Perspective of Human Resource Management READING 1.1 The India Way: Lessons for the U.S. Peter Cappelli, Harbir Singh Jitendra Singh, and Michael Useem...

Hi I know you opted out of an earlier question. I have several open questions. I really need to get them in. Would you be willing to take any of these questions? I have been waiting for 3 days. I...

Companies can intentionally commoditize their products or services as a strategy to make money. Discuss using these two different cases below how companies can intentionally commoditize their...

I need to get help with this case study PwC Case Studies in Taxation, 2013, PwC, LLP FLATIRONS, INC. Flatirons, Inc. (dba Flatirons Flapjacks Caf) specializes in unique breakfast and brunch menus and...

Overview of the case. What do you think of the particular assignment given to Browning? TEXTBOOK : Brown, C.V., DeHayes, D.W., Hoffer, J.A., Martin, E.W., and Perkins, W.C. Managing Information...

Suppose that you are studying a protein involved in transporting ions in and out of cells. Would you expect to find the nonpolar residues in the interior or the exterior? Why? Would you expect to...

Irmas Handicrafts produces plastic deer for lawn ornaments. Its hard work, says Irma, but anything to make a buck. Her production function is given by f(x1, x2) = (min{x1, 2x2})1/2, where x1 is the...

13. (a) Complete both diagrams to show what converging and diverging lenses do to parallel rays of light. (b) Explain what effect using a thicker lens would have on the position of the principal...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

2. Outline the functions of nonverbal communication

5. Make a study of your Facebook (or other social networking) pages. Compile a list of the types of language used, including acronyms. Do you ever misunderstand the language in posts from your...

3. Describe the set of communication symbols that are nonverbal codes