Business, 08.07.2020 19:01, Queey

Cody Co. developed its annual manufacturing overhead budget for its master budget for 2016 as follows: Expected annual operating capacity 120,000 Direct Labor Hours
Variable overhead costs:
Indirect labor $600,000
Indirect materials 120,000
Factory supplies 60,000
Total variable $780,000
Fixed overhead costs:
Depreciation 240,000
Supervision 120,000
Property taxes 96,000
Total fixed $456,000
Total costs $1,236,000
The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours.
Required:
Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours.

Answers: 3

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Cody Co. developed its annual manufacturing overhead budget for its master budget for 2016 as follow...