CALCULATOR PRINTER VERSION B Budget keport Assembling Department For the Month E
ID: 2562912 • Letter: C
Question
CALCULATOR PRINTER VERSION B Budget keport Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $51,200 $50,200 $1,000 Favorable Direct labor Indirect materials 26,880 26,980 100 Unfavorable Indirect labor Utilities Maintenance 57,600 54,200 3,400 Favorable 19,200 18,740 460 Favorable 16,000 15,830 170 Favorable 11,520 11,780 260 Unfavorable Total variable 182,400 177,730 4,670 Favorable Fixed costs Rent 11,200 11,200 0- Neither Favorable nor Unfavorable 18,300 18,300-0- Neither Favorable nor Unfavorable Depreciation7.400 7.400-Neither Favorable nor Unfavorable Total fixed 36,900 36,900 0-Neither Favorable nor Unfavorable Total costs$219.300 $214,630 94,670 Favorable 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. 2l Your answer is partially correct. Try again 00ee ch 11/4/2017Explanation / Answer
Answer
Variable Cost
Budgeted (A)
per unit (B= A/64000 units)
Budgeted cost for 62000 units (B x 62000 units)
Direct Material
51200
0.8
49600
Direct Labor
57600
0.9
55800
Indirect Material
26880
0.42
26040
Indirect Labor
19200
0.3
18600
Utilities
16000
0.25
15500
Maintenance
11520
0.18
11160
Total
182400
2.85
176700
Budget
Actual Costs
Variance
Favourable/Unfavourable
Units
62000
62000
Variable Costs
Direct Materials
49600
50200
600
Unfavourable
Direct Labor
55800
54200
1600
Favourable
Indirect Material
26040
26980
940
Unfavourable
Indirect Labor
18600
18740
140
Unfavourable
Utilities
15500
15830
330
Unfavourable
Maintenance
11160
11780
620
Unfavourable
Total Variable Costs
176700
177730
1030
Unfavourable
Fixed Costs
Rent
11200
11200
0
Neither favourable nor unfavourable
Supervision
18300
18300
0
Neither favourable nor unfavourable
Depreciation
7400
7400
0
Neither favourable nor unfavourable
Total Fixed Costs
36900
36900
0
Neither favourable nor unfavourable
Total Costs
213600
214630
1030
Unfavourable
Variable Cost
Actual Cost for August for 62000 units (A)
per unit (B=A/62000)
September per unit cost (C=B+10%)
Cost for 68000 units (D=68000 x C)
Direct Material
50200
0.81
0.89
60564
Direct Labor
54200
0.87
0.96
65390
Indirect Material
26980
0.44
0.48
32550
Indirect Labor
18740
0.30
0.33
22609
Utilities
15830
0.26
0.28
19098
Maintenance
11780
0.19
0.21
14212
Total
177730
2.87
3.15
214423
Budget
Actual Costs
Variance
Favourable/Unfavourable
Units
68000
68000
Variable Costs
Direct Materials
54400
60564
6164.0
Unfavourable
Direct Labor
61200
65390
4190.0
Unfavourable
Indirect Material
28560
32550
3990.0
Unfavourable
Indirect Labor
20400
22609
2209.0
Unfavourable
Utilities
17000
19098
2098.0
Unfavourable
Maintenance
12240
14212
1972.0
Unfavourable
Total Variable Costs
193800
214423
20623.0
Unfavourable
Fixed Costs
Rent
11200
11200
0
Neither favourable nor unfavourable
Supervision
18300
18300
0
Neither favourable nor unfavourable
Depreciation
7400
7400
0
Neither favourable nor unfavourable
Total Fixed Costs
36900
36900
0
Neither favourable nor unfavourable
Total Costs
230700
251323
20623.0
Unfavourable
Variable Cost
Budgeted (A)
per unit (B= A/64000 units)
Budgeted cost for 62000 units (B x 62000 units)
Direct Material
51200
0.8
49600
Direct Labor
57600
0.9
55800
Indirect Material
26880
0.42
26040
Indirect Labor
19200
0.3
18600
Utilities
16000
0.25
15500
Maintenance
11520
0.18
11160
Total
182400
2.85
176700
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