Prepare Flexible Manufacturing Overhead Budget
Twyla Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead cost per direct labor hour as follows.
Indirect Labor $1.00
Indirect Material 0.60
Fixed overhead cost per month are: Supervision $4,000, Depreciation $1 500, and property taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month.
Prepare a monthly flexible manufacturing overhead budget for 2005 for the expected range of activity, using increments of 1,000 direct labor hours.
See attached file.
The flexible manufacturing overhead budget is …
The expert prepares flexible manufacturing overhead budgets. The normal operating range of 7,000 and 10,000 labor hours per month are determined..To continue with the answer click on mycoursewriter.com/