Prepare a flexible factory overhead cost budget


Western Wood Products Company prepared the following factory overhead cost budget for the Press Department for February 2010, during which it expected to require 10,000 hours of productive capacity in the department: Variable overhead cost:

Indirect factory labor $27,500 Power and light 3,600 Indirect materials 23,000

Total variable cost $ 54,100 Fixed overhead cost:

Supervisory salaries $42,000 Depreciation of plant and equipment 40,000 Insurance and property taxes 12,000

Total fixed cost 94,000

Total factory overhead cost $148,100
Assuming that the estimated costs for March are the same as for February,

prepare a flexible factory overhead cost budget for the Press Department for March for 8,000, 10,000,and 12,000hours of production.

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Accounting Basics: Prepare a flexible factory overhead cost budget
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