Question1 unit are direct materials $7, direct labor $11, and overhead $17. Mont

Question

Question1 unit are direct materials $7, direct labor $11, and overhead $17. Monthly budgeted fixed manufacturing overheed costs are $7,500 for depreciation and $4,400 for supervision. that it will produce 6,900 units of product I0A during the current month. Budgeted varlable manufacturing costs per lowing costs: direct materials $45,300, direct labor $74,700, In the current month, Wade actually produced 7,400 units and incurred the fol variable overhead $125,700, depreciation $7,500, and supervision $4,690. dget column is based on estimated production wille the Actual column is the actual cost Incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Neither Favorable nor Unfavorable Budget Actual Were costs controlled? Question Attempts: O of 3 used

Explanation / Answer

Wade Company Static Budget Report Budget Actual Difference Sales in Units        6,900.00        7,400.00 Variable Costs: Direct Materials      48,300.00      45,300.00    3,000.00 (F) Direct Labor      75,900.00      74,700.00    1,200.00 (F) Variable Overhead    117,300.00    125,700.00    8,400.00 (U) Total Variable Costs    241,500.00    245,700.00    4,200.00 (U) Fixed Costs Depreciation        7,500.00        7,500.00                 -   Supervision        4,400.00        4,690.00       290.00 (U) Total Fixed Costs      11,900.00      12,190.00       290.00 (U) Variable Cost per Unit              35.00              33.20            1.80 (F) Cost is Controlled, because Variable Cost per Unit is $1.80 less than the Budgeted Variable Cost per unit.

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