An incomplete flexible budget for overhead is given below for MHD company that owns and...
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Accounting
An incomplete flexible budget for overhead is given below for MHD company that owns and operates a large automatic carwash facility in Ghala.
MHD Company Flexible Budget
Overhead costs
Cost formula
(per car)
Activity (cars)
8,000
9,000
10,000
Variable overheadcosts
Cleaning supplies
?
?
4,500
?
Electricity
?
?
5,400
?
Maintenance
?
?
1,800
?
Total variable overheadcost
?
?
?
?
Fixed overhead costs
Operator wages
?
10,000
?
Depreciation
?
20,000
?
Rent
?
8,000
?
Total Fixed overhead costs
?
?
?
Total overhead costs
?
?
?
Required:
a) Fill in the missing data in the flexible budget. b) Prepare a flexible budget performance report for both the variable and fixed overhead costs for August, assuming that the company static budget is 8,300 cars. Actual Costs Incurred for 8,300 Cars in the month of August is as follows:
Variable overhead costs
Fixed overhead costs:
Cleaning supplies
.$ 4,350
Operator wages
. $ 10,060
Electricity
. $ 4,865
Depreciation
$ 20,200
Maintenance
$ 1,600
Rent
$ 8,000
|
MHD Company Flexible Budget | |||||
Overhead costs | Cost formula (per car) | Activity (cars) | |||
|
| 8,000 | 9,000 | 10,000 | |
Variable overheadcosts |
|
|
|
| |
Cleaning supplies | ? | ? | 4,500 | ? | |
Electricity | ? | ? | 5,400 | ? | |
Maintenance | ? | ? | 1,800 | ? | |
Total variable overheadcost | ? | ? | ? | ? | |
Fixed overhead costs |
|
|
|
| |
Operator wages |
| ? | 10,000 | ? | |
Depreciation |
| ? | 20,000 | ? | |
Rent |
| ? | 8,000 | ? | |
Total Fixed overhead costs |
| ? | ? | ? | |
Total overhead costs |
| ? | ? | ? | |
Required:
Actual Costs Incurred for 8,300 Cars in the month of August is as follows:
Variable overhead costs |
| Fixed overhead costs: |
|
Cleaning supplies | .$ 4,350 | Operator wages | . $ 10,060 |
Electricity | . $ 4,865 | Depreciation | $ 20,200 |
Maintenance | $ 1,600 | Rent | $ 8,000 |
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