Hi, I need help with this Ex. Please show me the work with answers. Hill Company

Question

Hi,

I need help with this Ex. Please show me the work with answers.

Hill Company uses budgets in controlling costs. The August 2014 budget report for the company's Assembling Department is as follows. The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 62,000 units were produced.

Explanation / Answer

The Monthly Total Budgeted Cost = $ 37,290

The Varaible Budgeted Cost per unit = Total Varaible Budgeted Cost / Budgeted Number of Units

                                                           = 195,840 / 64,000 = $ 3.06 per unit

The Total Monthly Budgeted Cost formula = $ 37,290 + Varaible Cost of $ 3.06 per Unit

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