Question 1 - Crede Company budgeted selling expenses of $29,241 in January, $34,995 in February, and $40,932 in March. Actual selling expenses were $31,049 in January, $34,443 in February, and $48,170 in March.
Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.
Question 2 - Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
|
Indirect labor
|
$1.10
|
|
Indirect materials
|
0.50
|
|
Utilities
|
0.20
|
Fixed overhead costs per month are: Supervision $4,189, Depreciation $1,895, and Property Taxes $868. The company believes it will normally operate in a range of 6,300-9,300 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours.