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What amount would the flexible budget estimate

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Question - Pollitt Potato Packers has a flexible budget for manufacturing overhead that is based on direct labour hours(DLH). The following overhead costs appear on the flexible budget at the 200,000-hour level of activity:

Variable Overhead Costs (total):

Packing Supplies $120,000

Indirect Labour $180,000

Fixed Overhead Costs (total):

Utilities $100,000

Insurance $40,000

Rent $20,000

a) At an activity level of 180,000 direct labour hours, what amount would the flexible budget estimate for indirect labour cost?

b) What amount would the flexible budget estimate for total variable overhead cost per direct labour hour?

c) At an activity level of 180,000 direct labour hours, what amount would the flexible budget estimate for total budgeted fixed costs?

d) At an activity level of 160,000 direct labour hours, what amount would the flexible budget estimate for the utilities?

Reference no: EM132075141

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