Cook Company overhead cost budget

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Cook Company estimates that 326,600 direct labor hours will be worked during the coming year, 2014, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, are computed for the year.

Fixed Overhead Costs	Variable Overhead Costs
Supervision	$84,840	Indirect labor	$153,502
Depreciation	70,080	Indirect materials	88,182
Insurance	27,240	Repairs	48,990
Rent	25,920	Utilities	75,118
Property taxes	21,720	Lubricants	22,862
	$229,800		$388,654

It is estimated that direct labor hours worked each month will range from 29,400 to 37,800 hours. During October, 29,400 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: supervision $7,070, depreciation $5,840, insurance $2,243, rent $2,160, and property taxes $1,810. Variable overhead costs: indirect labor $14,907, indirect materials, $7,531, repairs $4,331, utilities $7,044, and lubricants $2,472.

Prepare a monthly manufacturing overhead flexible budget for each increment of 2,800 direct labor hours over the relevant range for the year ending December 31, 2014. (List variable costs before fixed costs.)

COOK COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2014
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	$
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	$

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Prepare a flexible budget report for October. (List variable costs before fixed costs.)

COOK COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2014
			Difference
	Budget	Actual Costs	Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N)
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FUN
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials Insurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				FUN
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs				FUN
Activity LevelDepreciationDirect LaborDirect Labor HoursDirect MaterialsFixed CostsIndirect LaborIndirect MaterialsInsuranceLubricantsProperty TaxesRentRepairsSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs	$	$	$	FUN