Difference Manufacturing Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Variable costs Direct materials $50,840...

			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$50,840	$49,840	$1,000	Favorable
Direct labor	55,800	52,500	3,300	Favorable
Indirect materials	27,280	27,480	200	Unfavorable
Indirect labor	18,600	18,180	420	Favorable
Utilities	18,600	18,460	140	Favorable
Maintenance	9,920	10,220	300	Unfavorable
Total variable	181,040	176,680	4,360	Favorable
Fixed costs
Rent	11,700	11,700	–0–	Neither Favorable nor Unfavorable
Supervision	18,600	18,600	–0–	Neither Favorable nor Unfavorable
Depreciation	7,700	7,700	–0–	Neither Favorable nor Unfavorable
Total fixed	38,000	38,000	–0–	Neither Favorable nor Unfavorable
Total costs	$219,040	$214,680	$4,360	Favorable

monthlybudgetamountsinthereportwerebasedon anexpectedproductioof62,000unitpermonthor744,000unitsperyearThe companypresident,however,isunhappywiththeresultsforAugustbecauseonly60,000unitwerproduced.

InSeptember,66,000unitsweremadePreparethebudgetreportusingflexible budgetdataassumingeachvariablecostwas10%higherthanitsactualcostinAugust,andfixedcostswerethesame

prepare a flexible budget report

Expert Solution

Manufacturing Costs	Budget	Actual	Variance
Direct materials	$ 55,924	$ 60,306	$ 4,382	Unfavorable
Direct labor	$ 61,380	$ 63,525	$ 2,145	Unfavorable
Indirect materials	$ 30,008	$ 33,251	$ 3,243	Unfavorable
Indirect labor	$ 20,460	$ 21,998	$ 1,538	Unfavorable
Utilities	$ 20,460	$ 22,337	$ 1,877	Unfavorable
Maintenance	$ 10,912	$ 12,366	$ 1,454	Unfavorable
Total variable	$ 199,144	$ 213,783	$ 14,639	Unfavorable
Fixed costs
Rent	$ 11,700	$ 11,700	$ -	Neither Favorable nor Unfavorable
Supervision	$ 18,600	$ 18,600	$ -	Neither Favorable nor Unfavorable
Depreciation	$ 7,700	$ 7,700	$ -	Neither Favorable nor Unfavorable
Total fixed	$ 38,000	$ 38,000	$ -	Neither Favorable nor Unfavorable
Total costs	$ 237,144	$ 251,783	$ 14,639	Unfavorable

ekkarill92 answered 2 years ago

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