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Category > Management Posted 31 Jan 2018 My Price 8.00

Ontario Corporation

r_

GQ) Flexible Budget. The Ontario Corporation operates its producing depart- ments under a flexible budget with monthly allowances established for 20% intervals. Capacity is based on direct labor hours with 2,500 direct labor hours

representing 100% normal capacity. - lo~

In the month of October the Shelving Department operated at the 87% level. The exhibit shows budget allowances at the 80% and 100% levels.

FLEXIBLE BUDGET FOR SHELVING DEPARTMENT

 

 

Percentage of Capacity

FOR OCTOBER

, 19--

 

 

80%

 

 

100%

Direct labor hours

  

.

2,000

2,500

Direct labor costs

  

.

$4,000

$5,000

Foreman , s salary c.

n ..f

 

.

 

$ 500

 

$ 500

Indirect labor

  

.

1,350

1,500

Clerical salaries

  

.

700

750

Factory supplies

  

.

430

500

Depreciation. -::

  

.

500

500

Taxes

  

.

250

250

Insurance

  

.

200

200

Maintenance

  

.

380

400

Power

  

.

360

400

Total indirect expe

nses

.

$4,670

$5,000

 

Factory overhead rat

 

e

 

.

 

$2.335

 

$2.00

Required: (I) A detailed flexible budget for the 87% level. (2) The amount of underabsorbed fixed factory overhead.

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 31 Jan 2018 10:01 PM My Price 8.00

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