expects Budgete materials $7, direct labour $11, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,200 for depreciation and 3,500 for supervision. n the current month, Wade produced 6,500 units and incurred the following costs: direct materials $42,252, direct labour $67,900, variable verhead $120,972, depreciation $8,200, and supervision $3,717. repare a static budget report. (List variable costs before fixed costs.) Budget Wade Company Static Budget Report Actual Difference Favourable Unfavourable Neither Favourable nor Unfavourable
expects Budgete materials $7, direct labour $11, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,200 for depreciation and 3,500 for supervision. n the current month, Wade produced 6,500 units and incurred the following costs: direct materials $42,252, direct labour $67,900, variable verhead $120,972, depreciation $8,200, and supervision $3,717. repare a static budget report. (List variable costs before fixed costs.) Budget Wade Company Static Budget Report Actual Difference Favourable Unfavourable Neither Favourable nor Unfavourable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Wade Company expects to produce 6,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct
materials $7, direct labour $11, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,200 for depreciation and
$3,500 for supervision.
In the current month, Wade produced 6,500 units and incurred the following costs: direct materials $42,252, direct labour $67,900, variable
overhead $120,972, depreciation $8,200, and supervision $3,717.
Prepare a static budget report. (List variable costs before fixed costs.)
Were costs controlled?
Budget
Wade Company
Static Budget Report
Actual
LA
Difference
Favourable
Unfavourable
Neither Favourable nor Unfavourable
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