Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 02 Oct 2017 My Price 7.00

Glenda Company

Glenda Company uses a flexible budget system for manufacturing overhead based on direct labor hours. For 2011 the monthly master overhead budget for the Packaging Department based on 25,000 direct labor hours was as follows: ----------- Variable costs (Based on 25,000 DL Hrs/month)--------------- --------------- Fixed Costs (Monthly Amounts---------------

Direct Labor $ 30,000   Supervision $ 5,000
Supplies and lubricants 12,500   Depreciation 2,000
Maintenance 17,500   Property taxes 1,500
Utilities 10,000   Insurance 1,000
  $ 70,000     $ 9,500

During July, 24,000 direct labor hours were worked. The company actually incurred the following variable costs in July: indirect labor, $30,200; supplies and lubricants, $11,600; maintenance, $17,500; and utilities, $9,200. Actual fixed overhead costs were unchanged, except for Supervision, which increased to $7,000. REQUIRED: [A] Prepare a budget report that compares the monthly planned (static) budget for manufacturing overhead and with the monthly flexible budget at the actual level of activity. Show the activity variances that result. What is your overall interpretation of the variances? [B] Prepare a budget report that compares the flexible budget with the actual results. Define and explain the variances that you are reporting.

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Maurice Tutor
(5)
Status NEW Posted 02 Oct 2017 02:10 PM My Price 7.00

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