Reference no: EM131929979
Question 1 - Crede Company budgeted selling expenses of $29,241 in January, $34,995 in February, and $40,932 in March. Actual selling expenses were $31,049 in January, $34,443 in February, and $48,170 in March.
Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.
Question 2 - 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.
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Indirect labor
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$1.10
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Indirect materials
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0.50
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Utilities
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0.20
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Fixed overhead costs per month are: Supervision $4,189, Depreciation $1,895, and Property Taxes $868. The company believes it will normally operate in a range of 6,300-9,300 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours.