Review: Full, Anonymous: No Module 5 Exercises Problem 1 Frizell Company is preparing its manufacturing overhead budget for 2011. Relevant data consist of the following. ∙ Units to be produced (by quarters): 10,000, 12,000, 14,000, and 16,000 ∙ Direct labor: Time is 1.5 hours per unit ∙ Variable overhead costs per direct labor hour: Indirect materials $0.70; indirect labor $1.20; and maintenance $0.50 ∙ Fixed overhead costs per quarter: Supervisory salaries $35,000; depreciation $16,000; and maintenance $12,000 Prepare the manufacturing overhead budget for the year, showing quarterly data. Problem 2 Jake Palermo has prepared the following list of statements about budgetary control. Identify each statement as true or false . If false, indicate how to correct the statement. 1. Budget reports compare actual results with planned objectives.
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