Rooney company uses a flexible budget for manufacturing

Reference no: EM13608963

Rooney 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: $1.20, Indirect materials: $ 0.70 and Utilities: $ 0.30. Fixed overhead costs per month are: Supervision $3,915, Depreciation $1,629, and Property Taxes $596. The company believes it will normally operate in a range of 6,800-12,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2012 for the expected range of activity, using increments of 2,000 direct labor hours

Reference no: EM13608963

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