The November monthly factory overhead cost budget for Brass Ltd. at normal capacity of 10,000 or 5,000 direct labor hours follows: (1) Prepare a flexible budget for 80%, 100% and 120% of normal capacity.
(2) Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours.

Question

The November monthly factory overhead cost budget for Brass Ltd. at normal capacity of 10,000 or 5,000 direct labor hours follows:  (1) Prepare a flexible budget for 80%, 100% and 120% of normal capacity.
(2) Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours.

Quizplus · Accepted Answer

The Answer of The November monthly factory overhead cost budget for Brass Ltd. at normal capacity of 10,000 or 5,000 direct labor hours follows:  (1) Prepare a flexible budget for 80%, 100% and 120% of normal capacity.
(2) Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours.

The November Monthly Factory Overhead Cost Budget for Brass Ltd