7 . Hemberger Corporation currently produces baseball caps in an automated process.
Expected
production per month is 20,000 units, direct material costs are $1.50 per unit, and manufacturing
overhead costs are $23,000 per month. Manufacturing overhead is allocated based on units of
production. What is the flexible budget for 10,000 and 20,000 units, respectively? (E) a. $26,500;
$41,500 c. $38,000; $53,000 b. $26,500; $53,000 d. none of the above Horngren *. Based on normal
capacity operations, Sta. Ana Company employs 25 workers in its Refining Department, working 8 hours
a day, 20 days per month at a wage rate of P6 per hour. At normal capacity, production in the
department is 5,000 units per month. Indirect materials average P0.25 per direct labor hour; indirect
labor cost is 12½% of direct labor cost; and other overhead are P0.15 per direct labor hour. The flexible
budget at the normal capacity activity level follows: Direct materials P 4,000 Direct labor 24,000 Fixed
factory overhead 1,200 Indirect materials 1,000 Indirect labor 3,000 Other overhead 600 Total P 33,800
Cost per unit P 6.76 The total production cost for one month at 80% capacity is (M) a. P20,760 c.
P27,280 b. P21,500 d. P30,160 RPCPA 1082 Questions 36-38 are based on the following information: G &
N 10e Barrick Company has established a flexible budget for manufacturing overhead based on direct
labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: Variable costs (total):
Packing supplies $120,000 Indirect labor $180,000 Fixed costs (total): Utilities $100,000 Rent $ 40,000
Insurance $ 20,000 36. The flexible budget for factory overhead would show that the variable factory
overhead cost per direct labor-hour is: A. $1.80. C. $0.90. B. $1.50. D. $0.60. 37. At an activity level of
170,000 direct labor-hours, the flexible budget for factory overhead would show the budgeted amount
for utilities as: A. $ 85,000. C. $160,000. B. $140,000. D. $100,000. 38. If Barrick Company plans to
operate at 190,000 direct labor-hours during the next period, the flexible budget would show indirect
labor costs of: A. $171,000. C. $114,000. B. $180,000. D. $270,000. Questions 39-41 are based on the
following information: G & N 10e Wicks Company has established a flexible budget for manufacturing
overhead based on direct labor-hours. Budgeted costs at 100,000 direct labor-hours are as follows:
Variable costs (total): Packing supplies $70,000 Indirect labor $90,000 Fixed costs (total): Utilities
$50,000 Rent $20,000 Insurance
