Problem 10-1A Your answer is partially correct. Try again. Bumblebee Company estimates that 402,600 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. Variable Overhead Costs Fixed Overhead Costs Supervision $89,280 Depreciation 73,440 Insurance 26,040 Rent 21,360 Indirect labor Indirect materials Repairs Utilities $169,092 80,520 40,260 60,390 40,260 $390,522 Property taxes 22,440 Lubricants $232,560 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours. During October, 22,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870. Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 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 Flexible Budget For the Year 2017 Activity Level 22800 9 25000 Direct Labor Hours 25900 29000 29000 32100 32100 Variable Costs Indirect Labor 9576 J 10878 12180 13482 Indirect Materials 4560 T 5180 T 5800 T 6420 T Utilities 3420 3885 4 350 4815 Lubricants T 2280 T 2590 T 2900 T 3210 Repairs 2280 T 2590 LT 2900 T 3210 T Total Variable Costs A Total Variable Costs # 22116 22116 25123 28130 28130] 31137 T Fixed Costs A Supervision Supervision 5056 5744 6431 7118 Depreciation 4159 4725 5290 5855 Insurance = 1475 1675 1876 2076 Insurance Trent 1210 1374 1539 1703 T Property Taxes 1271 1444 1616 1789 T Total Fixed Costs A 13170 14961 16752 18542 Total Costs 35286 40084 44882 49679 (b) Prepare a flexible budget report for October. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable T Direct Labor Hours 22800 22800 T Variable Costs T Indirect Labor 9576 10556 980 T Unfavorable | Indirect Materials 4560 4260 Favorable 300 3 20 Favorable Unfavorable T Utilities 3420 3740 1 | Lubricants 2280 2640 Unfavorable T Repairs 2280 40T Favorable 2240 2 3436 T Total Variable Costs Total Variable Costs * 22116 1 23436 1320 T Unfavorable unfavorable Fixed Costs T Supervision xe T Depreciation A Insurance y Rent Rent bbbdddd ddddddd Property Taxes Total Fixed Costs Total Costs Total Costs