Bumblebee Company estimates that 337 700 direct labor hours will be worked during the coming year 2020 in the Packaging

Question

Bumblebee Company estimates that 337 700 direct labor hours will be worked during the coming year 2020 in the Packaging Department On this basis the following budgeted manufacturing overhead cost data are computed for the year Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes 88 200 72 000 29 760 24 360 13 080 227 400 Variable Overhead Costs Indirect labor Indirect materials Repairs Utilities Lubricants 155 342 74 294 67 540 67 540 16 885 381 601 It is estimated that direct labor hours worked each month will range from 21 500 to 29 600 hours During October 21 500 direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs Supervision 7 350 Depreciation 6 000 Insurance 2 450 Rent 2 030 and Property taxes 1 090 Variable overhead costs Indirect labor 10 920 Indirect materials 4 320 Repairs 4 240 Utilities 4 630 and Lubricants 1 365 a Prepare a monthly manufacturing overhead flexible budget for each increment of 2 700 direct labor hours over the relevant range for the year ending December 31 2020 List variable costs before fixed costs BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Elevible Budget

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