Question

In: Accounting

Brief Exercise 10-5 Gundy Company expects to produce 1,304,400 units of Product XX in 2017. Monthly...

Brief Exercise 10-5

Gundy Company expects to produce 1,304,400 units of Product XX in 2017. Monthly production is expected to range from 85,600 to 128,600 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3.

In March 2017, the company incurs the following costs in producing 107,100 units: direct materials $560,500, direct labor $741,700, and variable overhead $1,074,000. Actual fixed costs were equal to budgeted fixed costs.

Prepare a flexible budget report for March. (List variable costs before fixed costs.)

GUNDY COMPANY
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced
$
$
$

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced
$
$
$

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced

Favorable
Unfavorable
Neither Favorable nor Unfavorable

Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced
$
$
$

Favorable
Unfavorable
Neither Favorable nor Unfavorable


Were costs controlled?

Yes
No

Solutions

Expert Solution


Related Solutions

Gundy Company expects to produce 1,316,400 units of Product XX in 2017. Monthly production is expected...
Gundy Company expects to produce 1,316,400 units of Product XX in 2017. Monthly production is expected to range from 74,600 to 122,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2. In March 2017, the company incurs the following costs in producing 98,300 units: direct materials $511,500, direct labor $588,800, and variable overhead $989,000. Actual fixed costs...
Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected...
Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 127,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1. In March 2020, the company incurs the following costs in producing 107,000 units: direct materials $455,000, direct labor $746,000, and variable overhead $971,000. Actual fixed costs...
Gundy Company expects to produce 1,310,400 units of Product XX in 2020. Monthly production is expected...
Gundy Company expects to produce 1,310,400 units of Product XX in 2020. Monthly production is expected to range from 83,000 to 113,000 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $8, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2. Prepare a flexible manufacturing budget for the relevant range value using 15,000 unit increments. (List variable costs before fixed costs.) GUNDY COMPANY Monthly Flexible Manufacturing Budget...
In 2018, X Company expects to produce and sell 66,000 units of its only product for...
In 2018, X Company expects to produce and sell 66,000 units of its only product for $34.73. The following are budgeted variable costs per unit: Direct Materials $5.39 Direct Labor $5.27 Variable Overhead $4.31 Variable selling and administrative $4.32 Total $19.29 Budgeted fixed overhead for 2018 is $187,440, and budgeted fixed selling and administrative expenses are $190,740. What is X Company's budgeted contribution margin rate for 2018?
XX company budgeted 10,000 units for production during 2019. It has capacity to produce 12,000 units....
XX company budgeted 10,000 units for production during 2019. It has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs were provided for 10,000 units: Direct material $ 70,000 Direct labor 300,000 Variable manufacturing overhead 40,000 Fixed factory overhead costs 50,000 Total $ 460,000 All fixed costs are unavoidable. XX received an offer from another company to manufacture the 10,000 units for $39, for the same quality. In this case, when XX compares...
E25-1 Parsons Company is planning to produce 2,000 units of product in 2017. Each unit requires...
E25-1 Parsons Company is planning to produce 2,000 units of product in 2017. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $16 per hour. The overhead rate is 70% of direct labor. Instructions (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. (b) Compute the standard cost of one unit of product. (c) What are the potential advantages to a corporation of...
Daston Company manufactures two products, Product F and Product G. The company expects to produce and...
Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,910 units of Product F and 2,430 units of Product G during the current year. Data relating to the company’s three activity cost pools are given below for the current year: Total Activity Activity Cost Pools Total Cost Product F Product G Total Machine setups $ 35,682 160 setups 153 setups 313 setups Purchase orders $ 248,880 950 orders 1,490 orders 2,440 orders...
Dace Company manufactures two products, Product F and Product G. The company expects to produce and...
Dace Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,200 units of Product F and 2,100 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year: Total Activity Activity Cost Pool Total Cost Product F Product G Total Machine setups $ 6,300 150 setups 150 setups 300 setups Purchase orders $ 53,320 530 orders 1,190 orders 1,720 orders...
Daba Company manufactures two products, Product F and Product G. The company expects to produce and...
Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,700 units of Product F and 3,100 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 15,800 120 setups...
Cooke Company manufactures two products, Product F and Product G. The company expects to produce and...
Cooke Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Below are current year data for the company's three activity cost pools. Total Activity Activity Cost Pool Total Cost Product F Product G Total Machine setups $ 10,800 80 setups 100 setups 180 setups Purchase...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT