Thome company uses a flexible budget for manufacturing

Assignment Help Accounting Basics

Reference no: EM13567328

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		$1.00
Indirect materials		0.60
Utilities		0.40

Fixed overhead costs per month are: Supervision $4,000, Depreciation $1,200, and Property Taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month.
Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.

Variable Costs		Fixed Costs
Indirect labor	$8,800	Supervision	$4,000
Indirect materials	5,300	Depreciation	1,200
Utilities	3,200	Property taxes	800

Comment on the findings of manufacturing overhead flexible budget report using the two different direct labor hours presented in Exercise 10-4.

Reference no: EM13567328

Questions Cloud

The contribution margin ratio of lime corporations only : the contribution margin ratio of lime corporations only product is 75. the companys monthly fixed expense is 688500 and

If current liabilities exceed current assets what does that : if current liabilities exceed current assets what does that mean as far as the liquidity of the business concern? how

Estimate the dividends for the next five years compute the : present value of dividends fresno corp. is a fast-growing company that expects to grow at a rate of 30 percent over

The firm last paid a dividend of 356 if you require a rate : zero growth knight supply corp. has not grown for the past several years and management expects this lack of growth to

Thome company uses a flexible budget for manufacturing : thome company uses a flexible budget for manufacturing overhead based on direct labor hours. variable manufacturing

Define and discuss the concept of romanticism as it applies : overviewthis final exam is designed to assess your understanding of the composers styles instrumentation and cultural

You normally require a return of 14 percent on stocks of : you are currently thinking about investing in a stock valued at 25.00 per share. the stock recently paid a dividend of

The process requires new machinery that would cost 1968450 : net present value briarcrest condiments is a spice-making firm. recently it developed a new process for producing

What is the form 1120 schedule m-3 what is shown on the : 1.the creation of s corporation as an alternative available for business organization created a variety of

User Account

All Pages