Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:
9,000 hours:
Variable overhead costs:
Indirect factory labor $70,200 (70,200/9000=7.8)
Power and light 3,870 (0.43)
Indirect materials 27,900 (3.1)
Total variable overhead cost $101,970
Fixed overhead costs:
Supervisory salaries $35,690
Depreciation of plant and equipment 22,430
Insurance and property taxes 14,280
Total fixed overhead cost 72,400
Total factory overhead cost $174,370
7,000 hours:
Variable overhead costs:
Indirect factory labor (7000*7.8)= 54,600
Power and light (0.43*7000)= 3,010
Indirect materials (3.1*7000)= 21,700
Total variable overhead cost $79,310
Total fixed overhead cost 72,400
Total factory overhead cost $151,710
11,000 hours:
Variable overhead costs:
Indirect factory labor (11000*7.8)= 85,800
Power and light (0.43*11000)= 4,730
Indirect materials (3.1*11000)= 34,100
Total variable overhead cost $124,630
Total fixed overhead cost 72,400
Total factory overhead cost $197,030
