Your answer is partially correct. Try again. Wade Company estimates that it will

Question

Your answer is partially correct. Try again. Wade Company estimates that it will produce 6,900 units of product 1OA during the current month. Budgeted variable manufacturing costs per unit are direct materials s, direct labor $11, and overhead $17, Monthly budgeted fixed manufacturing overhead costs are $8,300 for depreciation and $4,500 for supervision. in the current month. Wade actual y Produced 7,400 units and incurred the following costs: direct materials ?52,300 direct labor $74,700 variable overhead $126,000 depreciation S8,300 and supervision 54,740 Prapare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurrad during the pariod. (List variable costs before fixed costs.) Wade Company Static Budget Report Favorable Neither Favorable Budget Actual Variable Costs Direct Materials 2900 Favorable Direct Labor 74700 1200 Favorable 0 Neither Favorable nor Unfavorable Total Costs Were costs controlled?

Explanation / Answer

Were Costs Controlled : NO

Particulars Budgeted Actual Difference Favorable/Unfavorable Number of units produced 6,900 7,400 500 Favorable Variable costs : Direct Material 55,200 52,300 2,900 Favorable Direct Labor 75,900 74,700 1,200 Favorable Overheads 117,300 126,000 8,700 Unfavorable Total variable cost 248,400 253,000 4,500 Unfavorable Fixed CostS : Depreciation 8,300 8,300 0 Neither favorable nor Unfavorable Supervision 4,500 4,740 240 Unfavorable Total fixed cost 12,800 13,040 240 Unfavorable Total Cost 261,200 266,040 4,840 Unfavorable

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