Weygandt, Managerial Accounting, 7e CAL Problem 10-3A (Part Level Submission) Ra

Question

Weygandt, Managerial Accounting, 7e CAL Problem 10-3A (Part Level Submission) Ratchet Com pany uses budgets in controlling costs. The August 2017 budget report for the company's A RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance $50,020 $48,920 $1,100 Favorable 54,900 52,000 2,900 Favorable 29,280 29,580 300 Unfavorable 20,740 20,290 450 Favorable 21,350 21,180 170 Favorable 7,320 7,590 270 Unfavorable Total variable 183,610 179,560 4,050 Favorable Fixed costs Rent Supervision Depreciation 12,800 12,800 -0- Neither Favorable nor Unfavorable 17,400 17,400 -0- Neither Favorable nor Unfavorable 7,500 7,500 0- Neither Favorablernor Unfavorable 37,700 37,700 -0- Neither Favorable nor Unfavorable Total fixed Total costs $221,310 $217 260 $4,050 Favorable The monthly budget amounts in the report were based on an expected production of 61,000 units per month manager is pleased with the report and expects a raise, or at least praise for a job well done. The companyp because only 59,000 units were produced. (a) & (b) Your answer is correct. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is - 37,700 3.01 + variable costs of per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)

Explanation / Answer

September
Flexible budget report

Budget Actual costs Difference Units 65000 65000 Variable costs: Direct materials 53300 53812 -512 U Direct labor 58500 57200 1300 F Indirect materials 31200 32538 -1338 U Indirect labor 22100 22319 -219 U Utilities 22750 23298 -548 U Maintenance 7800 8349 -549 U Total Variable Costs 195650 197516 -1866 U Fixed costs: Rent 12800 12800 N Supervision 17400 17400 N Depreciation 7500 7500 N Total fixed costs 37700 37700 N Total costs $233350 $235216 -$1866 U

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.