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    Flexible Budgets - Hardball Corporation

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    Hardball Corporation uses the following cost formulas in its flexible budget for manufacturing overhead:

    Item Cost Formula
    Utilities... $6,000 per year, plus $0.30 per machine hour (MH)
    Supplies... $10,000 per year, plus $0.80 per machine hour
    Depreciation... $25,000 per year
    Indirect labor... $21,000 per year, plus $0.40 per machine hour

    Using these cost formulas, complete the following flexible budget:

    Machine Hours Cost Formula
    Overhead Costs (per MH) 8,000 10,000 12,000
    Variable overhead costs:
    ___________________ $_______ $_______ $_______ $_______
    ___________________ ________ ________ ________ ________
    ___________________ ________ ________ ________ ________
    Total variable costs.... $_______ ________ ________ ________

    Fixed overhead costs:
    ___________________ ________ ________ ________
    ___________________ ________ ________ ________
    ___________________ ________ ________ ________
    ___________________ ________ ________ ________
    Total variable costs.... ________ ________ ________
    Total overhead costs... $_______ $_______ $_______

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    https://brainmass.com/business/accounting/flexible-budgets-hardball-corporation-168825

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    Hardball Corporation uses the following cost formulas in its flexible budget for manufacturing overhead:

    Item Cost Formula
    Utilities... $6,000 per year, plus $0.30 per machine hour (MH)
    Supplies... $10,000 per year, plus $0.80 per machine ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare the flexible budgets for Hardball Corporation.

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