Fixed overhead costs per month are supervision 4498

Reference no: EM13581119

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		$1.50
Indirect materials		0.90
Utilities		0.40

Fixed overhead costs per month are: Supervision $4,498, Depreciation $1,423, and Property Taxes $692. The company believes it will normally operate in a range of 7,800–13,800 direct labor hours per month.

Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.

Variable Costs		Fixed Costs
Indirect labor	$17,442	Supervision	$4,498
Indirect materials	10,450	Depreciation	1,423
Utilities	4,251	Property taxes	692

Prepare a flexible budget performance report, assuming that the company worked 11,800 direct labor hours during the month.

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		$1.50
Indirect materials		0.90
Utilities		0.40

Fixed overhead costs per month are: Supervision $4,498, Depreciation $1,423, and Property Taxes $692. The company believes it will normally operate in a range of 7,800-13,800 direct labor hours per month.

Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.

Variable Costs		Fixed Costs
Indirect labor	$17,442	Supervision	$4,498
Indirect materials	10,450	Depreciation	1,423
Utilities	4,251	Property taxes	692

Prepare a flexible budget performance report, assuming that the company worked 11,800 direct labor hours during the month.

Reference no: EM13581119

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