Acme Company's production budget for August is 18,200 units and includes the following component unit costs: direct materials, $8.00; direct labor, $10.70; variable overhead, $6.70. Budgeted fixed overhead is $39,000. Actual production in August was 19,440 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. Note: Round "Cost per unit" to 2 decimal places. Direct materials Direct labor Variable overhead Cost Formula Original Budget (18,200 units) Flexed Budget (19,440 units)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Acme Company's production budget for August is 18,200 units and includes the following component unit
costs: direct materials, $8.00; direct labor, $10.70; variable overhead, $6.70. Budgeted fixed overhead is
$39,000. Actual production in August was 19,440 units.
Required:
Prepare a flexible budget that would be used to compare against actual production costs for August.
Note: Round "Cost per unit" to 2 decimal places.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total budgeted cost
Cost Formula
Original Budget
(18,200 units)
$
0
Flexed Budget
(19,440 units)
$
0
Transcribed Image Text:Acme Company's production budget for August is 18,200 units and includes the following component unit costs: direct materials, $8.00; direct labor, $10.70; variable overhead, $6.70. Budgeted fixed overhead is $39,000. Actual production in August was 19,440 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. Note: Round "Cost per unit" to 2 decimal places. Direct materials Direct labor Variable overhead Fixed overhead Total budgeted cost Cost Formula Original Budget (18,200 units) $ 0 Flexed Budget (19,440 units) $ 0
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