ACC – P21-1A Cook Company Solution$13.00 + Quantity - Add to cart Category: Accounting Tags: 0, 1, 2, 3, 36000hoursduring, 4000rent, 6400insurance, accounting, budget, company, cook, costs, costupervision, direct, flexible, following, hours, indirect, labor, lubricants, manufacturing, materials, october, overhead, p211a, prepare, range, repairs, report, solution, taxes, utilities, variable, wereincurredfixed, worked Description Reviews (0) Description P21-1A – Prepare flexible budget and budget report for manufacturing overhead.Cook Company estimates that 360,000 direct labor hours will be worked during the coming year,2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year. Fixed Overhead Costs Variable Overhead CostsSupervision $90,000 Indirect labor $126,000Depreciation 60,000 Indirect materials 90,000Insurance 30,000 Repairs 54,000Rent 24,000 Utilities 72,000Property taxes 18,000 Lubricants 18,000$222,000 $360,000 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000hours.During October, 27,000 direct labor hours were worked and the following overhead costs wereincurred.Fixed Overhead Costs Variable Overhead CostsSupervision $7,500 Indirect labor $10,360Depreciation 5,000 Indirect materials 6,400Insurance 2,470 Repairs 4,000Rent 2,000 Utilities 5,700Property taxes 1,500 Lubricants 1,640 Instructions:(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hoursover the relevant range for the year ending December 31, 2012. (b) Prepare a flexible budget report for October. (c) Comment on management’s efficiency in controlling manufacturing overhead costs in October. Reviews There are no reviews yet. Be the first to review “ACC – P21-1A Cook Company Solution” Cancel replyYour email address will not be published. Required fields are marked *Your rating Rate… Perfect Good Average Not that bad Very poor Your review *Name * Email * Related products Accounting Bus 630 managerial accounting $11.00 Add to cart Accounting Accounting Questions $13.00 Add to cart Accounting notes recievable $1.00 Add to cart
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