Question

Flexible Overhead Budget Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 10,000 hours for the month. Fixed costs are budgeted at $60,000 for the month. a. Prepare a monthly factory overhead flexible budget for 9,000, 10,000, and 11,000 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 9,000 10,000 11,000 Variable factory overhead cost $ $ $ Fixed factory overhead cost Total factory overhead cost $ $ $

Answer 1

`\left[\begin{array}{cccc}&Units\:9,000&Units\:10,000&Units\:11,000\\Variable\: Overhead&40,500&45,000&49,500\\Fixed\: Overhead&60,000&60,000&60,000\\Total\: Overhead&100,500&105,000&109,500\\\end{array}\right]`

Step-by-step explanation:

The objective would be to multiply the variable overhead rate by each level.

Then add the fixed cost to get total overhead