Wiki Wiki Company has determined that the variable overhead rate is $4.5 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 12,000 hours for the month. Fixed costs are budgeted at $75,600 for the month. a. Prepare a monthly factory overhead flexible budget for 11,000, 12,000, and 13,000 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 11,000 12,000 13,000 Variable factory overhead cost Fixed factory overhead cost Total factory overhead cost b. How much overhead would be applied to production if 13,000 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.
Wiki Wiki Company has determined that the variable overhead rate is $4.5 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 12,000 hours for the month. Fixed costs are budgeted at $75,600 for the month. a. Prepare a monthly factory overhead flexible budget for 11,000, 12,000, and 13,000 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 11,000 12,000 13,000 Variable factory overhead cost Fixed factory overhead cost Total factory overhead cost b. How much overhead would be applied to production if 13,000 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Wiki Wiki Company has determined that the variable overhead rate is $4.5 per direct labor hour in the Fabrication Department. The
normal production capacity for the Fabrication Department is 12,000 hours for the month. Fixed costs are budgeted at $75,600 for
the month.
a. Prepare a monthly factory overhead flexible budget for 11,000, 12,000, and 13,000 hours of production. Enter all amounts as
positive numbers.
Wiki Wiki Company
Monthly Factory Overhead Cost Budget-Fabrication Department
Direct labor hours
11,000
12,000
13,000
Variable factory overhead cost
Fixed factory overhead cost
Total factory overhead cost
b. How much overhead would be applied to production if 13,000 hours were used in the department during the month? If required,
round your calculations to two decimal places and your final answer to the nearest dollar.
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