//edugen.wileyplus.com/edugenystudenhaml Weygandt, Managerial Accounting, 7e Ass

Question

//edugen.wileyplus.com/edugenystudenhaml Weygandt, Managerial Accounting, 7e Assignment GradebookORION Downloadable eTextbook ent Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $50,840 $49,840 $1,000 Favorable 55,800 52,500 3,300 Favorable Direct labor Indirect materials 27,280 27,480 200 Unfavorable Indirect labor Utilities Maintenance 18,600 18,180 420 Favorable 18,600 18,460 140 Favorable 9.920 10.220 300Unfavorable Total variable 181,040 176,680 4,360 Favorable Flxed costs Rent Supervision Depreciation 11,700 11,700 -0- Neither Favorable nor Unfavorable 18,600 18,600 0-Neither Favorable nor Unfavorable 7,700 7,700 -0- Neither Favorable nor Unfavorable 38,000 38,000 0-Neither Favorable nor Unfavorable Total fixed Total costs 219,040 $214,680 54,360 Favorable e to search Oo

Explanation / Answer

Answer:

Retchet COMPANY

Flexible Budget Report

Assembling Department

For the Month Ended August 31, 2014

Difference

Favorable F

Manufacturing Costs

Flexible

Unfavorable U

Budget

Actual

Neither Favorable

nor Unfavorable N

Unit

66,000

66,000

0

Variable costs

   Direct materials

$54,120

$54,824

$704

U

   Direct labor

$59,400

$57,750

$1,650

F

   Indirect materials

$29,040

$30,228

$1,188

U

   Indirect labor

$19,800

$19,998

$198

U

   Utilities

$19,800

$20,306

$506

U

   Maintenance

$10,560

$11,242

$682

U

      Total variable

192,720

194,348

$1,628

U

Fixed costs

   Rent

11,700

11,700

–0–

N

   Supervision

18,600

18,600

–0–

N

   Depreciation

7,700

7,700

–0–

N

      Total fixed

38,000

38,000

–0–

N

Total costs

$230,720

$232,348

$1,628

F

Working notes for the above answer is as under

1

Budget at 66,000 Units

Direct Materials

($0.82 × 66,000) =

$54,120

Direct Labor

($0.90 × 66,000) =

$59,400

Indirect Materials

($0.44 × 66,000) =

$29,040

Indirect Labor

($0.30 × 66,000) =

$19,800

Utilities

($0.30 × 66,000) =

$19,800

Maintenance

($0.16 × 66,000) =

$10,560

2

Note that actual variable costs in September were 10% higher than the actual variable costs in August. Therefore to find the actual variable costs in September, the actual variable costs in August must be increased 10% as follows:

August (actual)

September (actual)

Direct Materials

49840

× 110%

=

$54,824

Direct Labor

52500

× 110%

$57,750

Indirect Materials

27480

× 110%

$30,228

Indirect Labor

18180

× 110%

$19,998

Utilities

18460

× 110%

$20,306

Maintenance

10220

× 110%

$11,242

$185,050

$194,348

Retchet COMPANY

Flexible Budget Report

Assembling Department

For the Month Ended August 31, 2014

Difference

Favorable F

Manufacturing Costs

Flexible

Unfavorable U

Budget

Actual

Neither Favorable

nor Unfavorable N

Unit

66,000

66,000

0

Variable costs

   Direct materials

$54,120

$54,824

$704

U

   Direct labor

$59,400

$57,750

$1,650

F

   Indirect materials

$29,040

$30,228

$1,188

U

   Indirect labor

$19,800

$19,998

$198

U

   Utilities

$19,800

$20,306

$506

U

   Maintenance

$10,560

$11,242

$682

U

      Total variable

192,720

194,348

$1,628

U

Fixed costs

   Rent

11,700

11,700

–0–

N

   Supervision

18,600

18,600

–0–

N

   Depreciation

7,700

7,700

–0–

N

      Total fixed

38,000

38,000

–0–

N

Total costs

$230,720

$232,348

$1,628

F

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