Glenda Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2012, the master overhead budget for the Packaging Department based on 300,000 direct labor hours was as follows.
|
Variable Costs |
Fixed Costs |
||
|
Indirect labor |
$360,000 |
Supervision |
$ 60,000 |
|
Supplies and lubricants |
150,000 |
Depreciation |
24,000 |
|
Maintenance |
210,000 |
Property taxes |
18,000 |
|
Utilities |
120,000 |
Insurance |
12,000 |
|
Indirect labor |
$840,000 |
$114,000 |
During July, 24,000 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs.
Instructions
Prepare a flexible budget report for the Packaging Department for July.