Purchase Solution

Flexible Overhead Budget, Report and Responsibilty Report

Not what you're looking for?

Ask Custom Question

Hay's Corporation is continuing its budget preparations. Hay's had the following static budget and overhead costs for March.

Hay's Corporation Hay's Corporation
Manufacturing Overhead Budget (Static) Manufacturing Overhead Costs (Actual)
For the Month of March For the Month of March
Budgeted production in units 117,500 Production in units 118,500
Budgeted costs Costs
Indirect materials $ 7,050 Indirect materials $ 7,100
Indirect labor 11,750 Indirect labor 11,825
Utilities 10,575 Utilities 10,700
Maintenance 5,875 Maintenance 5,900
Salaries 42,000 Salaries 42,000
Depreciation 16,800 Depreciation 16,800
Property taxes 2,500 Property taxes 2,500
Insurance 1,200 Insurance 1,200
Janitorial 1,300 Janitorial 1,300

Total budgeted costs $99,050 Total costs $99,325

Hay's produced 118,500 units in March rather than the budgeted number of units.

Instructions
(a) Prepare a flexible overhead budget based on the following amounts produced.

(1) 115,500 units
(2) 116,500 units
(3) 117,500 units
(4) 118,500 units
(5) 119,500 units

(b) Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March.

(c) Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable.

Can you please give me a detail on how it is calculated step by step?

Purchase this Solution

Solution Summary

This solution provides assistance with a flexible overhead budget, a report, and a responsibility report.

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.