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Bumblebee Company estimates that 315,600 direct labor hours will be worked during the coming year,...

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Accounting

Bumblebee Company estimates that 315,600 direct labor hours will be worked during the coming year, 2020, 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 $88,800 Indirect labor $145,176 Depreciation 70,080 Indirect materials 69,432 Insurance 29,040 Repairs 31,560 Rent 25,440 Utilities 63,120 Property taxes 21,840 Lubricants 15,780 $235,200 $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 following overhead costs were incurred. Fixed overhead costs: Supervision $7,400, Depreciation $5,840, Insurance $2,380, Rent $2,120, and Property taxes $1,820. Variable overhead costs: Indirect labor $12,792, Indirect materials, $5,234, Repairs $2,520, Utilities $5,450, and Lubricants $1,575.

(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, 2020. (List variable costs before fixed costs.)

(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.)

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