Flint Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows. FLINT COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Manufacturing Costs Budget Actual Favorable Unfavorable Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labor 57,820 54,520 3,300 Favorable Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable Maintenance 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs Rent 12,100 12,100 –0– Supervision 19,000 19,000 –0– Depreciation 7,300 7,300 –0– Total fixed 38,400 38,400 –0– Total costs $219,530 $214,750 $4,780 Favorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $.......... + variable costs of $....... per unit. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) FLINT COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017For the Quarter Ended August 31, 2017For the Year Ended August 31, 2017 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ In September, 63,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) FLINT COMPANY Assembling Department Flexible Budget Report For the Year Ended September 30, 2017For the Quarter Ended September 30, 2017For the Month Ended September 30, 2017 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ FavorableUnfavorableNeither Favorable nor Unfavorable

Flint Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows. FLINT COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Manufacturing Costs Budget Actual Favorable Unfavorable Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labor 57,820 54,520 3,300 Favorable Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable Maintenance 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs Rent 12,100 12,100 –0– Supervision 19,000 19,000 –0– Depreciation 7,300 7,300 –0– Total fixed 38,400 38,400 –0– Total costs $219,530 $214,750 $4,780 Favorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $.......... + variable costs of $....... per unit. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) FLINT COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017For the Quarter Ended August 31, 2017For the Year Ended August 31, 2017 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ In September, 63,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) FLINT COMPANY Assembling Department Flexible Budget Report For the Year Ended September 30, 2017For the Quarter Ended September 30, 2017For the Month Ended September 30, 2017 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ FavorableUnfavorableNeither Favorable nor Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 14

Flint Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows.

FLINT COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable
Variable costs
Direct materials	$48,380	$47,280	$1,100	Favorable
Direct labor	57,820	54,520	3,300	Favorable
Indirect materials	25,960	26,060	100	Unfavorable
Indirect labor	21,240	20,790	450	Favorable
Utilities	20,650	20,510	140	Favorable
Maintenance	7,080	7,190	110	Unfavorable
Total variable	181,130	176,350	4,780	Favorable
Fixed costs
Rent	12,100	12,100	–0–
Supervision	19,000	19,000	–0–
Depreciation	7,300	7,300	–0–
Total fixed	38,400	38,400	–0–
Total costs	$219,530	$214,750	$4,780	Favorable

The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced.

State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.)

The formula is $..........

+ variable costs of $.......

per unit.

Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)

FLINT COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017For the Quarter Ended August 31, 2017For the Year Ended August 31, 2017
			Difference
	Budget	Actual Costs	Favorable Unfavorable Neither Favorable nor Unfavorable


	$	$	$











	$	$	$

In September, 63,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.)

FLINT COMPANY Assembling Department Flexible Budget Report For the Year Ended September 30, 2017For the Quarter Ended September 30, 2017For the Month Ended September 30, 2017
			Difference
	Budget	Actual Costs	Favorable Unfavorable Neither Favorable nor Unfavorable


	$	$	$











	$	$	$	FavorableUnfavorableNeither Favorable nor Unfavorable

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