Cullumber Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department isas follows.Variable costsDirect materialsManufacturing Costs Budget ActualDirect laborIndirect materialsIndirect laborUtilitiesMaintenanceTotal variableFixed costsRentSupervisionDepreciationTotal fixedTotal costsAssembling DepartmentFor the Month Ended August 31, 2022$49,60057,04027,28022,32015,5007,440Cullumber CompanyBudget Report179,1807,100$48,500 $1,100 Favorable21,91054,040 3,000 Favorable27,580 300 Unfavorable15,390Difference7,63011,500 11,500FavorableUnfavorable17,100 17,100Neither Favorablenor Unfavorable110 Favorable190 Unfavorable175,050 4,130 Favorable7,100410 Favorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable35,700 35,700 -0- Neither Favorable nor Unfavorable$214,880 $210,750 $4,130Favorable-0- Neither Favorable nor UnfavorableThe monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 units peryear. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. Thecompany president, however, is unhappy with the results for August because only 60,000 units were produced. Your answer is partially correct.In September, 66,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable costwas 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costsbefore fixed costs.)UnitsVariable CostsDirect MaterialsDirect LaborIndirect MaterialsIndirect LaborUtilitiesMaintenanceTotal Variable CostsFixed CostsRentSupervisionDepreciationTotal Fixed CostsTotal CostseTextbook and MediaSave for Later$$Budget66000528006072029040237601650079201907401150017100710035700CULLUMBER COMPANYAssembling DepartmentFlexible Budget ReportFor the Month Ended September 30, 2022$$Actual Costs66000586856538833371.8026511.1018621.909239.30211810.501150017100710035700$$Neitnor58854668.404331.802751.102121.901312.3021070.50iiiUiAttempts: 1 of 5 used Submit Answer

Flexible budget is a financial plan of estimated revenues and expenses based on actual amount of…

In September, 66,000 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.)

In September, 66,000 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.)

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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