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youngdelvin123
11.02.2021 •
Business
Wade Company estimates that it will produce 6,800 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $8, direct labor $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,300 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 7,300 units and incurred the following costs: direct materials $51,800, direct labor $87,400, variable overhead $124,400, depreciation $8,300, and supervision $3,780. Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Favorable Neither Favorable Budget Actual nor Unfavorable Were costs controlled?
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Ответ:
Wade Company
Static Budget Report
Budget Actual Variance
Units of production 6,800 7,300 500 Favorable
Variable manufacturing costs:
Direct materials $54,400 $51,800 $2,600 Favorable
Direct labor 88,400 87,400 1,000 Favorable
Overhead 115,600 124,400 (8,800) Unfavorable
Sub-Total $258,400 263,600 ($5,200) Unfavorable
Fixed manufacturing costs:
Depreciation $8,300 $8,300 $0 Neither
Supervision 3,500 3,780 (280) Unfavorable
Sub-Total $11,800 $12,080 ($280) Unfavorable
Total $270,200 $275,680 ($5,480) Unfavorable
Some costs were controlled (direct materials and labor). The overhead costs were not very well controlled.
Explanation:
a) Data and Calculations:
Estimated units of production of product IOA = 6,800 units
Budgeted variable manufacturing costs:
Direct materials $8 * 6,800 = $54,400
Direct labor $13 * 6,800 = $88,400
Overhead $17 * 6,800 = $115,600
Total= $38
Budgeted fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,500
Total = $11,800
Actual:
Units produced = 7,300
Direct materials cost = $51,800
Direct labor cost = $87,400
Variable overhead = $124,400
fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,780
Total = $12,080
Ответ: