The following budget information relates to Mercedes Benz Corporation. Variable manufacturing overhead costs per...
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Accounting
The following budget information relates to Mercedes Benz Corporation.
Variable manufacturing overhead costs per machine hour are as follows:
Indirect Labor $7.30
Indirect Materials 3.55
Maintenance .97
Utilities .53
Fixed overhead costs per month are:
Supervision $900
Insurance 500
Property Taxes 600
Depreciation 300
The normal operating range is 4,000 to 8000 machine hours per month.
INSTRUCTIONS
Mercedes-Benz would like a flexible manufacturing overhead budget prepared
based on machine hours. Given the range of activity above, prepare the
budget using increments of 2,000 machine hours.
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