Prepare the departmental flexible overhead budget

Assignment Help Accounting Basics
Reference no: EM133188084

Question - Zain, Inc., is developing flexible budgets for each department as part of its plan to use standard costs. Normal monthly volume in the Assembling Department is 50,000 direct labor hours. At normal volume, department fixed costs include $70,000 for power and $40,000 for maintenance, and salaries of $70,000 per month. Indirect variable labor is $120,000, which involves 15,000 hours of indirect labor at $8 per hour. Other variable costs in the Assembling Department are as follows:  Tools and supplies $3.00 per machine hour Maintenance 2.50 per machine hour Power 3.50 per machine hour Depreciation 4.50 per machine hour   Normal volume is 40,000 machine hours per month. The company uses a service (or usage) hours method to depreciate its fixed assets.

Required -

1. Prepare the departmental flexible overhead budget for 30,000 machine hours and for 40,000 machine hours.

2. Did you treat depreciation expense as a variable or a fixed cost? Defend your approach.

Reference no: EM133188084

Questions Cloud

Critical self-reflection of personal leadership journey : Analysis exhibited in relation to your preferred leadership style, and depth of reflection concerning personal leadership experiences, behaviours and outcomes
Should tee-vee company prepare its financial statements : Question - Tee-Vee Company is a manufacturer of television. Should Tee-Vee Company prepare its financial statements under the going concern assumption
Prepare the journal entries for january payment : The goods have a sales price of P1,220,000 (cost P1,000,000). Prepare the journal entries for January payment
Calculate the expected return and standard deviation : Calculate the expected return and standard deviation of the expected returns for the tie lab, given the following distribution of returns
Prepare the departmental flexible overhead budget : Prepare the departmental flexible overhead budget for 30,000 machine hours and for 40,000 machine hours
Find the market value : Find the market value - Westpac Bank (WBC): 1,000 shares originally acquired in September 2015 for $29.99 each
Post the journals to the ledgers : Assuming all goods were sold during the month of June 2021;You are required to prepare and load the following; Post the journals to the ledgers
Application of Graph Theory : Propose a project topic related to the application of graph theory - Biological networks (biochemical, neural, ecological, etc.).
Opinion regarding this labor dispute : Visit the AFL-CIO's Blog. Scroll through the list of articles covering current labor disputes and select one that is of interest to you. Based on the article yo

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the necessary adjustments on June

April 5 Received from A, a customer P500,000, 60-day ,12% note, dated April 4, in payment of an account. Prepare the necessary adjustments on June

  What is the balance due on August using the merchant rule

On February 4th John borrowed ksh 3,000/= at 11%. What is the balance due on August 15th using the merchant's rule

  Determine and indicate the amount erismus would record

Determine and Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in the circumstances.

  Service revenue

Sparky Company performed consultation services for Wildcat Corporation and agreed to allow Wildcat to pay over time. Sparky is considering several different note options below.  Wildcat's normal borrowing rate is 8%. For each option listed below, det..

  Recommend a fraud prevention plan for the organization

Recommend a fraud prevention plan for this organization. Determine the positive or negative consequences that the fraud prevention plan might have on employees.

  Now assume that fixed and variable costs were allocated

sanilac county has a lease on a lawn mower for 2500 per month and .02 per minute of operation. operating costs for fuel

  What is the par per share after the split

Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split?

  Prepare the journal entry to record purchase of equipment

Prepare the journal entry to record the purchase of the equipment on account, where Oriole is located in a province with (5% GST plus 5% PST).

  What are the qualitative considerations that must be taken

FGV sugar business have been in a lot of debate lately. What are the qualitative considerations that must be taken into account in the decision

  Calculate the degree of operating leverage

Calculate the degree of operating leverage given the following information: sales of $25,000; variable costs of $13,000;

  Prepare the general journal entry to record this transaction

Assuming same facts as in (a) except that fair value information for assets exchanged is not determinable. Prepare general journal entry to record transaction

  The failure to properly record an adjusting entry to accrue

The failure to properly record an adjusting entry to accrue a revenue item will result in an

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd