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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.)

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Cullumber Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Variable costs Direct materials Manufacturing Costs Budget Actual Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs Assembling Department For the Month Ended August 31, 2022 $49,600 57,040 27,280 22,320 15,500 7,440 Cullumber Company Budget Report 179,180 7,100 $48,500 $1,100 Favorable 21,910 54,040 3,000 Favorable 27,580 300 Unfavorable 15,390 Difference 7,630 11,500 11,500 Favorable Unfavorable 17,100 17,100 Neither Favorable nor Unfavorable 110 Favorable 190 Unfavorable 175,050 4,130 Favorable 7,100 410 Favorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 35,700 35,700 -0- Neither Favorable nor Unfavorable $214,880 $210,750 $4,130 Favorable -0- Neither Favorable nor Unfavorable The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced.
Transcribed Image Text:Cullumber Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Variable costs Direct materials Manufacturing Costs Budget Actual Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs Assembling Department For the Month Ended August 31, 2022 $49,600 57,040 27,280 22,320 15,500 7,440 Cullumber Company Budget Report 179,180 7,100 $48,500 $1,100 Favorable 21,910 54,040 3,000 Favorable 27,580 300 Unfavorable 15,390 Difference 7,630 11,500 11,500 Favorable Unfavorable 17,100 17,100 Neither Favorable nor Unfavorable 110 Favorable 190 Unfavorable 175,050 4,130 Favorable 7,100 410 Favorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 35,700 35,700 -0- Neither Favorable nor Unfavorable $214,880 $210,750 $4,130 Favorable -0- Neither Favorable nor Unfavorable The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 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 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.) Units Variable Costs Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent Supervision Depreciation Total Fixed Costs Total Costs eTextbook and Media Save for Later $ $ Budget 66000 52800 60720 29040 23760 16500 7920 190740 11500 17100 7100 35700 CULLUMBER COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2022 $ $ Actual Costs 66000 58685 65388 33371.80 26511.10 18621.90 9239.30 211810.50 11500 17100 7100 35700 $ $ Neit nor 5885 4668.40 4331.80 2751.10 2121.90 1312.30 21070.50 i i i U i Attempts: 1 of 5 used Submit Answer
Transcribed Image Text:Your answer is partially correct. 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.) Units Variable Costs Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent Supervision Depreciation Total Fixed Costs Total Costs eTextbook and Media Save for Later $ $ Budget 66000 52800 60720 29040 23760 16500 7920 190740 11500 17100 7100 35700 CULLUMBER COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2022 $ $ Actual Costs 66000 58685 65388 33371.80 26511.10 18621.90 9239.30 211810.50 11500 17100 7100 35700 $ $ Neit nor 5885 4668.40 4331.80 2751.10 2121.90 1312.30 21070.50 i i i U i Attempts: 1 of 5 used Submit Answer
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