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.


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Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
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 Costs
	Supervision		$90,000		Indirect labor		$126,000
	Depreciation		60,000		Indirect materials		90,000
	Insurance		30,000		Repairs		54,000
	Rent		24,000		Utilities		72,000
	Property 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	36,000
hours.
During October,		27,000	direct labor hours were worked and the following overhead costs were
incurred.
	Fixed Overhead Costs				Variable Overhead Costs
	Supervision		$7,500		Indirect labor		$10,360
	Depreciation		5,000		Indirect materials		6,400
	Insurance		2,470		Repairs		4,000
	Rent		2,000		Utilities		5,700
	Property taxes		1,500		Lubricants		1,640

Instructions:
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of							3,000	direct labor hours
over the relevant range for the year ending December 31, 2012.

	COOK COMPANY
	Packaging Department
	Monthly Manufacturing Overhead Flexible Budget
	For the Year 2012
	Activity level
	Direct labor hours			Number	Number	Number	Number
	Variable costs
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Total variable costs (1.00)			Formula	Formula	Formula	Formula

	Fixed costs
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Title			Amount	Amount	Amount	Amount
	Total fixed costs			Formula	Formula	Formula	Formula
	Total costs			Formula	Formula	Formula	Formula

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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.

P21-1A - flexible budget report

ACC - P21-1A Cook Company

P21_Cook Company _Manfacturing Budgets