Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October 2014, during which it expected to require 20,000 hours of productive capacity in the department: Solution Hi, Please find the detailed answer as follows: Notes: Fixed Cost remain constant irrespective of the level of production. Thanks. .

1. Leno Manufacturing Company prepared the following factory overhead cost budget for the Press
Department for October 2014, during which it expected to require 20,000 hours of productive
capacity in the department:
Solution
Hi,
Please find the detailed answer as follows:
Notes:
Fixed Cost remain constant irrespective of the level of production.
Thanks.
18000 20000 22000
Variable Overhead Cost
indirect Factory Labor 162000 180000 198000
Power and Light 10800 12000 13200
Indirect Materials 57600 64000 70400
Total Variable Factory Overhead 230400 256000 281600
Fixed Factory Overhead Costs
Supervisor Salaries 80000 80000 80000
Depreciation of Plant and Equipment 50000 50000 50000
Insurance and Property Taxes 32000 32000 32000
Total Fixed Factory Overhead 162000 162000 162000
Total Factory Overhead 392400 418000 443600