**Swifty Company Overview**Swifty Company expects to produce 1,215,600 units of Product XX in 2020. Monthly production is expected to range from 79,000 to 111,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2.**March 2020 Production Costs**In March 2020, the company incurs the following costs in producing 95,000 units:- Direct materials: $498,000- Direct labor: $569,000- Variable overhead: $1,053,000Actual fixed costs were equal to budgeted fixed costs.**Flexible Budget Report Preparation**Prepare a flexible budget report for March. (List variable costs before fixed costs.)---**SWIFTY COMPANY****Manufacturing Flexible Budget Report****For the Month Ended March 31, 2020**| Category | Budget | Actual | Difference | Favorable/Unfavorable/Neither ||----------------------------|---------|---------|------------|--------------------------------|| **Fixed Costs** | | | | || - | 95,000 | 95,000 | | || - | | | | || - | | | | || - | | | | || - | | | | || - | | | | || - | | | | || - | | | | || - | | | | || - | | | | |(Note: There are placeholders for additional costs and details, but specific values or cost categories are not provided in the image.)

Here in this question, we are required to prepare flexible budget for the month of March. Budget is prepared by management to estimate the future activity of the business. It works as a standard for comparing with the actual activity. Management prepare flexible budget to check estimated cost and revenue at different level of activity.Lets calculate the requirement. Budget Actual Difference Favorable/ Unfavorable Units 95,000 95,000 Direct material 475,000 498,000 (23,000) Unfavorable Direct labor 570,000 569,000 1,000 Favorable Variable overhead 1,045,000 1,053,000 (8,000) Unfavorable Total variable cost 2,090,000 2,120,000 (30,000) Unfavorable Fixed manufacturing cost 607,800 607,800 0 Fixed supervisor cost 202,600 202,600 0 Total fixed cost 810,400 810,400 0 Total cost 2,900,400 2,930,400 (30,000) Unfavorable Notes:- Budgeted cost calculation:- Budgeted direct material cost = 95,000 Units * $5 = $475,000 Budgeted direct labor cost = 95,000 Units * $6 = $570,000 Budgeted variable overhead cost = 95,000 * $11 = $1,045,000 Budgeted fixed manufacturing overhead = (1,215,600 / 12 Months) * $6 = $607,800 Budgeted fixed supervisor cost = (1,215,600 / 12 Months) * $2 = $202,600

Business

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Swifty Company expects to produce 1,215,600 units of Product XX in 2020. Monthly production is expected to range from 79,000 to 111,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2. In March 2020, the company incurs the following costs in producing 95,000 units: direct materials $498,000, direct labor $569,000, and variable overhead $1,053,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.) SWIFTY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorabl Neither Favor: Budget Actual nor Unfavora Fixed Costs 95000 95000 2$ $ $ $ 2$ 2$ $ 2$

Swifty Company expects to produce 1,215,600 units of Product XX in 2020. Monthly production is expected to range from 79,000 to 111,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2. In March 2020, the company incurs the following costs in producing 95,000 units: direct materials $498,000, direct labor $569,000, and variable overhead $1,053,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.) SWIFTY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorabl Neither Favor: Budget Actual nor Unfavora Fixed Costs 95000 95000 2$ $ $ $ 2$ 2$ $ 2$

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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