P4-4 Listed below are the budgeted factory overhead costs for 2011 for Muncie
Manufacturing, Inc.., at the projected level of 2,000 units:
EXPENSES:
indirect
materials...............................................$ 10,000
Indirect
labor...................................................... 20,000
Power................................................................
15,000
Straight-line
depreciation..................................... 30,000
Factory
property Tax........................................... 28,000
Factory
Insurance............................................... 12,000
Total....................................................................$115,000
Required:
Prepare
flexible budgets for factory overhead at the 1,000, 2,000, and 4,000 unit
levels. (Hint: You must first decide which of the listed costs should be
considered variable and which should be fixed.)
TUTORIAL PREVIEW
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Units
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1,000
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2,000
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4,000
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Expenses
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Variable:
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Indirect
materials
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5,000
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10,000
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20,000
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Indirect
labor
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10,000
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20,000
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40,000
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File name P4-4
Muncie Manufacturing.xls File type: xls PRICE: $4
