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Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Variable costs Manufacturing Costs Budget Actual Direct materials 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 Pharoah Company Budget Report 61,440 $56,320 $55,320 $1,000 29.440 21,760 16,000 8,960 193.920 12.500 17.600 6,800 Favorable 58,640 2,800 Favorable 29,640 200 Unfavorable 21,330 430 Favorable 100 Favorable 260 Unfavorable Difference 12.500 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 36,900 36,900 -0- Neither Favorable nor Unfavorable $230,820 $226,950 $3,870 Favorable Favorable Unfavorable 15,900 9,220 190,050 3,870 Favorable 17,600 Neither Favorable nor Unfavorable 6,800 The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced.

Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Variable costs Manufacturing Costs Budget Actual Direct materials 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 Pharoah Company Budget Report 61,440 $56,320 $55,320 $1,000 29.440 21,760 16,000 8,960 193.920 12.500 17.600 6,800 Favorable 58,640 2,800 Favorable 29,640 200 Unfavorable 21,330 430 Favorable 100 Favorable 260 Unfavorable Difference 12.500 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 36,900 36,900 -0- Neither Favorable nor Unfavorable $230,820 $226,950 $3,870 Favorable Favorable Unfavorable 15,900 9,220 190,050 3,870 Favorable 17,600 Neither Favorable nor Unfavorable 6,800 The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced.

FINANCIAL ACCOUNTING
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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(a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $ The formula is $ (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 variable costs of $ + variable costs of $ Budget Budget (b) Prepare a budget report for August using flexible budget data (List variable costs before fixed costs) $ Actual Costs per unit PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Actual Costs per unit 17 Difference Favorable Unfavorable Neither Favorable nor Unfavorable PRATE V Neithe nor U v Di v Fa Unt
Transcribed Image Text:(a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $ The formula is $ (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 variable costs of $ + variable costs of $ Budget Budget (b) Prepare a budget report for August using flexible budget data (List variable costs before fixed costs) $ Actual Costs per unit PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Actual Costs per unit 17 Difference Favorable Unfavorable Neither Favorable nor Unfavorable PRATE V Neithe nor U v Di v Fa Unt
Current Attempt in Progress Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Manufacturing Costs Budget Actual costs Direct materials 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 $56,320 Pharoah Company Budget Report 61,440 29.440 21,760 16,000 8,960 193,920 17,600 12,500 12,500 6,800 Difference Favorable Unfavorable $55,320 $1,000 Favorable 58,640 2,800 Favorable 29,640 200 Unfavorable 21,330 430 Favorable Neither Favorable nor Unfavorable 15,900 100 Favorable 9,220 260 Unfavorable -0- Neither Favorable nor Unfavorable 17,600 -0- Neither Favorable nor Unfavorable 6,800 36,900 36,900 $230,820 $226,950 $3.870 Favorable 190,050 3,870 Favorable 16 16 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced.
Transcribed Image Text:Current Attempt in Progress Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Manufacturing Costs Budget Actual costs Direct materials 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 $56,320 Pharoah Company Budget Report 61,440 29.440 21,760 16,000 8,960 193,920 17,600 12,500 12,500 6,800 Difference Favorable Unfavorable $55,320 $1,000 Favorable 58,640 2,800 Favorable 29,640 200 Unfavorable 21,330 430 Favorable Neither Favorable nor Unfavorable 15,900 100 Favorable 9,220 260 Unfavorable -0- Neither Favorable nor Unfavorable 17,600 -0- Neither Favorable nor Unfavorable 6,800 36,900 36,900 $230,820 $226,950 $3.870 Favorable 190,050 3,870 Favorable 16 16 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced.
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