Brown Dental Equipment uses a flexible budget for its indirect manufacturing costs. For 2016 the company anticipated that it would produce 36,000 components with 7,000 machine hours and 14,400 employee days. The costs and cost drivers were to be as follows:
‪
Required:
a. Prepare an overhead static budget for 2016 with variances.
b. Prepare an overhead flexible budget for 2016 with variances.

Question

Brown Dental Equipment uses a flexible budget for its indirect manufacturing costs. For 2016 the company anticipated that it would produce 36,000 components with 7,000 machine hours and 14,400 employee days. The costs and cost drivers were to be as follows:
‪  
Required:
a. Prepare an overhead static budget for 2016 with variances.
b. Prepare an overhead flexible budget for 2016 with variances.

Quizplus · Accepted Answer

The Answer of Brown Dental Equipment uses a flexible budget for its indirect manufacturing costs. For 2016 the company anticipated that it would produce 36,000 components with 7,000 machine hours and 14,400 employee days. The costs and cost drivers were to be as follows:
‪  
Required:
a. Prepare an overhead static budget for 2016 with variances.
b. Prepare an overhead flexible budget for 2016 with variances.

Brown Dental Equipment Uses a Flexible Budget for Its Indirect