Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...

Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Actual unit component costs incurred during August include direct materials, $9.60; direct labor, $10.80; variable overhead, $6.20. Actual fixed overhead was $48,900.

Required:
Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

	Original Budget	Flexed Budget	Actual Cost	Budget Variance
Cost component	(18,900 units)	(21,840 units)	(21,840 units)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total Budgeted Cost	$	$	$

Expert Solution

If it is helpful, please rate the answer and if any doubt arises let me know

	Original Budget	Flexible Budget	Actual cost	Budget Variance
Cost component	18,900	21,840	21,840

Direct Material	$ 1,36,080	$ 1,57,248	$2,09,664	$ 52,416	U
Direct Labor	$ 2,15,460	$ 2,48,976	$2,35,872	$ 13,104	F
Variable overhead	$ 1,02,060	$ 1,17,936	$1,35,408	$ 17,472	U
Fixed overhead	$ 46,000	$ 46,000	$ 48,900	$ 2,900	U
Total Budgeted cost	$ 4,99,600	$ 5,70,160	$6,29,844	$ 59,684	U

ekkarill92 answered 2 years ago

Acme Company’s production budget for August is 18,100 units and includes the following component unit costs:...

Acme Company’s production budget for August is 18,100 units and includes the following component unit costs: direct materials, $8.00; direct labor, $10.50; variable overhead, $6.50. Budgeted fixed overhead is $38,000. Actual production in August was 19,872 units. Actual unit component costs incurred during August include direct materials, $9.00; direct labor, $10.00; variable overhead, $7.50. Actual fixed overhead was $40,100. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U"...

Acme Company’s production budget for August is 19,500 units and includes the following component unit costs:...

Acme Company’s production budget for August is 19,500 units and includes the following component unit costs: direct materials, $8.00; direct labor, $12.00; variable overhead, $6.00. Budgeted fixed overhead is $52,000. Actual production in August was 21,450 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. (Round "Cost per unit" to 2 decimal places.)

1. Acme Company’s production budget for August is 17,600 units and includes the following component unit...

1. Acme Company’s production budget for August is 17,600 units and includes the following component unit costs: direct materials, $7.70; direct labor, $10.10; variable overhead, $6.20. Budgeted fixed overhead is $33,000. Actual production in August was 18,810 units. Actual unit component costs incurred during August include direct materials, $8.50; direct labor, $9.10; variable overhead, $6.90. Actual fixed overhead was $34,600. The standard direct material cost per unit consists of 11 pounds of raw material at $0.7 per pound. During August,...

Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs:...

Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs: direct materials, $16; direct labor, $20; variable overhead, $12. Budgeted fixed overhead is $70,000 (35,000 units × 1/2hour × $4unit). Actual production in January was 36,000 units. Actual unit component costs incurred during January include direct materials, $16.50; direct labor, $18.90; variable overhead, $13.64. Actual fixed overhead was $67,000. The standard fixed overhead application rate per unit consists of $4 per machine hour and...

RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs...

RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs of $32,760, and fixed costs of $20,000. During the most recent period, the company incurred $32,200 of variable costs to produce and sell 20,000 units for $85,200. During this same period, the company earned $25,200 of operating income. Required: 1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) a. Flexible-budget operating income. b....

RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs...

RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs of $30,770, and fixed costs of $18,000. During the most recent period, the company incurred $34,100 of variable costs to produce and sell 18,000 units for $84,000. During this same period, the company earned $23,000 of operating income. QUESTIONS: 1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) a. Flexible-budget operating income. b....

RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs...

RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs of $44,390; and fixed costs of $18,600. During the most recent period, the company incurred $33,300 of variable costs to produce and sell 18,600 units for $86,300. During this same period, the company earned $26,300 of operating income. (Do not round intermediate calculations. Round final answer to the nearest whole dollar.) Required: 1. Determine the following for RTI Company: a. Flexible-budget operating income. b....

1)A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and...

1)A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The variable costs expected if the company produces and sells 16,000 units is: Multiple Choice $48,000. $64,000. $40,000. $24,000. $18,000. 2)A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The contribution margin expected if the company produces and sells 16,000 units is: Multiple Choice $48,000. $64,000. $40,000. $24,000. 3) = Hassock...

Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:

Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows: AmountPer Unit Direct materials $ 5.60 Direct labor $ 3.10 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 2.60 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 13. If the selling...

Factory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August:...

Factory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August: Advertising expenses $258,640 Manufacturing supplies 14,180 Power and light 42,280 Sales commissions 279,430 Factory insurance 24,620 Production supervisor wages 124,350 Production control wages 32,330 Executive officer salaries 263,610 Materials management wages 35,550 Factory depreciation 20,140 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Company Factory Overhead Cost...

Question