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P10-1B Speier Company estimates that 240,000 direct labor hours will be worked during 2014

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P10-1B Speier Company estimates that 240,000 direct labor hours will be worked during 2014 in the… 1 answer below » P10-1B Speier Company estimates that 240,000 direct labor hours will be worked during 2014 in the Assembly Department. On this basis, the following budgeted manufacturing overhead data are computed. Variable Overhead Costs                           Fixed  Overhead Costs View complete question » Indirect labor $  72,000 Supervision $  75,600 Indirect materials 48,000 & P10-1B Speier Company estimates that 240,000 direct labor hours will be worked during 2014 in the Assembly Department. On this basis, the following budgeted manufacturing overhead data are computed. Variable Overhead Costs                           Fixed  Overhead Costs Indirect labor $  72,000 Supervision $  75,600 Indirect materials 48,000 Depreciation 30,000 Repairs 36,000 Insurance 12,000 Utilities 24,000 Rent 9,600 Lubricants 12,000 Property taxes 6,000 $192,000 $133,200 It is estimated that direct labor hours worked each month will range from 18,000 to 24,000 hours. During January, 20,000 direct labor hours were worked and the following overhead costs were incurred. Variable Overhead Costs                           Fixed  Overhead Costs Indirect labor                $ 6,200                Supervision             $ 6,300 Indirect materials                            3,600                Depreciation                2,500 Repairs                                 2,300                Insurance                      1,000 Utilities                                1,700                Rent                                  850 Lubricants                            1,050                Property taxes                500 $14,850                                                   $11,150 Instructions (a)  Prepare a monthly flexible manufacturing overhead budget for each increment of 2,000 direct labor hours over the relevant range for the year ending December 31, 2014. (b)  Prepare a manufacturing overhead budget report for January. (c) Comment on management’s efficiency in controlling manufacturing over- head costs in January. View less » Nov 30 2015 04:46 PM


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