PROBLEM 10 - PROBLEM 10-1A (a) ALCORE COMPANY Flexible...

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Unformatted text preview: PROBLEM 10-1A (a) ALCORE COMPANY Flexible Monthly Manufacturing Overhead Budget Assembly Department For the Year 2005 Activity level Direct labor hours Variable costs Indirect labor ($.30) Indirect materials ($.20) Repairs ($.10) Utilities ($.16) Lubricants ($.04) Total variable costs ($.80) Fixed costs Supervision Depreciation Insurance Rent Property taxes Total fixed costs Total costs 18,000 $5,400 3,600 1,800 2,880 72 0 14,40 0 6,000 3,000 800 750 50 0 11,05 0 $25,45 0 20,000 $6,000 4,000 2,000 3,200 80 0 16,00 0 6,000 3,000 800 750 50 0 11,05 0 $27,05 0 22,000 $6,600 4,400 2,200 3,520 88 0 17,600 6,000 3,000 800 750 50 0 11,05 0 $28,65 0 24,000 $7,200 4,80 0 2,40 0 3,84 0 96 0 19,200 6,000 3,000 800 750 50 0 11,05 0 $30,25 0 PROBLEM 10-1A (Continued) (b) ALCORE COMPANY Manufacturing Overhead Budget Report (Flexible) Assembly Department For the Month Ended January 31, 2005 Difference Budget at 20,000 DLH $6,000 4,000 2,000 3,200 800 16,000 6,000 3,000 800 750 500 11,050 $27,050 Actual Costs 20,000 DLH $6,200 3,600 1,600 2,500 830 14,730 6,000 3,000 800 800 500 11,100 $25,830 Favorable F Unfavorable U $200 U 400 F 400 F 700 F 30 U 1,270 F 0 U 0 U 0 U 50 U 0U 50 U $1,220 F Direct labor hours (DLH) Variable costs Indirect labor Indirect materials Repairs Utilities Lubricants Total variable costs Fixed costs Supervision Depreciation Insurance Rent Property taxes Total fixed costs Total costs (c) Control over both variable and fixed costs was good. ...
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This note was uploaded on 05/16/2011 for the course AC 303 taught by Professor Richardkido during the Spring '11 term at Chaminade University.

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