Question

Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:
COPPER MANUFACTURING
Monthly Flexible Manufacturing Overhead Budget
Mixing Department
Activity level
Direct labor hours 3,000 4,000
Variable costs
Indirect materials $3,000 $4,000
Indirect labor 15,000 20,000
Factory supplies 4,500 6,000
Total variable 22,500 30,000
Fixed costs
Depreciation 20,000 20,000
Supervision 12,000 12,000
Property taxes 15,000 15,000
Total fixed 47,000 47,000
Total costs $69,500 $77,000
Prepare a flexible budget at the 5,000 direct labor hours of activity.

Answer 1

Answer:

Factory supplies 4,500 6,000

Total variable 22,500 30,000

Fixed costs

Depreciation 20,000 20,000

Supervision 12,000 12,000

Property taxes 15,000 15,000

Total fixed 47,000 47,000

Total costs $69,500 $77,000