Thome Company uses a flexible budget for manufacturing overhead - 13267

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yousafbhutta

yousafbhutta

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AE21-4 (a,b)


 

Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

 

 

Indirect labor

$1.00

 

Indirect materials

0.50

 

Utilities

0.41

 

Fixed overhead costs per month are: Supervision $3,700, Depreciation $1,500, and Property Taxes $790. The company believes it will normally operate in a range of 6,900-9,900 direct labor hours per month. Use increments of 1,000 direct labor hours. Assume that in July 2012, Thome Company incurs the following manufacturing overhead costs.

 

 

Variable Costs

 

Fixed Costs

 

Indirect labor

$8,629

 

Supervision

$3,700

 

Indirect materials

4,332

 

Depreciation

1,500

 

Utilities

3,000

 

Property taxes

790

 

 

 

 


Your answer is correct.

 

 

 

Complete the flexible budget performance report, assuming that the company worked 8,900 direct labor hours during the month. (If answer is zero, please enter 0, do not leave any fields blank. Enter all numbers as positive numbers.)

 


Your answer is correct.

 

 

 

Complete the flexible budget performance report, assuming that the company worked 7,900 direct labor hours during the month.

 

 

 

 

 

Solution Description

 

Thank you So much!

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