During the second quarter, Tillman's Toys budgeted total costs were $224,000 and its actual costs were $222,600. Using the first quarter budget report information shown below, are Tillman's total year-to-date actual costs over or under budget? Budget Actual Variable costs Direct materials ($4) $20,000 $20,850 Direct labor ($13) $70,000 $68,660 Overhead ($21) $110,000 $112,300 Total variable costs $200,000 $201,810 Fixed costs Depreciation Supervision Total fixed costs Total costs $12,000 $12,000 $7,000 $7,000 $19,000 $19,000 $219,000 $220,810 A. Actual costs are $3,210 under budget B. Actual costs are $1,400 under budget C. Actual costs are $1,400 over budget D. Actual costs are $410 over budget

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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General accounting

During the second quarter, Tillman's Toys budgeted total costs were $224,000
and its actual costs were $222,600. Using the first quarter budget report
information shown below, are Tillman's total year-to-date actual costs over or
under budget?
Budget Actual
Variable costs
Direct materials ($4) $20,000 $20,850
Direct labor ($13) $70,000 $68,660
Overhead ($21)
$110,000 $112,300
Total variable costs
$200,000 $201,810
Fixed costs
Depreciation
Supervision
Total fixed costs
Total costs
$12,000 $12,000
$7,000 $7,000
$19,000 $19,000
$219,000 $220,810
A. Actual costs are $3,210 under budget
B. Actual costs are $1,400 under budget
C. Actual costs are $1,400 over budget
D. Actual costs are $410 over budget
Transcribed Image Text:During the second quarter, Tillman's Toys budgeted total costs were $224,000 and its actual costs were $222,600. Using the first quarter budget report information shown below, are Tillman's total year-to-date actual costs over or under budget? Budget Actual Variable costs Direct materials ($4) $20,000 $20,850 Direct labor ($13) $70,000 $68,660 Overhead ($21) $110,000 $112,300 Total variable costs $200,000 $201,810 Fixed costs Depreciation Supervision Total fixed costs Total costs $12,000 $12,000 $7,000 $7,000 $19,000 $19,000 $219,000 $220,810 A. Actual costs are $3,210 under budget B. Actual costs are $1,400 under budget C. Actual costs are $1,400 over budget D. Actual costs are $410 over budget
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