P24- 1A

Part A
Bumblebee Company
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the year 2017

Direct Labor Hours 27000 30000 33000

Variable Cost
Indirect Labor *($0.42) 11340 12600 13860
Indirect Material **($0.30) 8100 9000 9900
Repairs *** ($0.23) 6210 6900 7590
Utilities ($0.24) 6480 7200 7920
Lubricants ($0.06) 1620 1800 7980
Total Variable Cost ($1.25) 33750 37500 41250

Fixed Cost
Supervision *8000 8000 8000
Depreciation **6000 6000 6000
Insurance ***2500 2500 2500
Rent 2000 2000 2000
Property Taxes 1500 1500 1500
Total Fixed Cost 20,000 20000 20000

Total Cost 53750 57500 61250

Part B

Bumblebee Company
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the year 2017
Budgeted Actual
Direct Labor Hours 27000 DLH 27000 DLH
Variable Cost
Indirect Labor *($0.42) 11340 12432
Indirect Material **($0.30) 8100 7680
Repairs *** ($0.23) 6210 6100
Utilities ($0.24) 6480 6840
Lubricants ($0.06) 1620 1920
Total Variable Cost ($1.25) 33750 34972

Fixed Cost
Supervision *8000 8000
Depreciation **6000 6000
Insurance ***2500 2460
Rent 2000 2000
Property Taxes 1500 1500
Total Fixed Cost 20,000 19960

Total Cost 53750 57500

dget

36000

15120 *126,000 / 300,000 direct labor hours = 0.42

10800 ** 90,000 / 300,000 direct labor hours = 0.30
8280 *** 69000/ 300,000 direct labor hours = 0.23
8640
2160
45000

8000 *96000 / 12 months = 8000

6000 **72000 / 12 months = 6000
2500 *** 30000/ 12 months = 2500
2000
1500
20000

65000

dget

Different
(F/U)
1,092 U
420 F
110 F
360 U
300 U
1222 U

0
0
40 F
0
0
40 F

1,182 U