Western Manufacturing produces a single product. The original budget for April was based on expected production of 16,000 units; actual production for April was 17,600 units. The original budget and actual costs incurred for the manufacturing department follow: Original Budget $ 249,600 Actual Costs $ 285,300 Direct materials Variable overhead Direct labor Fixed overhead Total 206,400 104,000 71,500 230,400 116,000 76,000 $ 631,500 $ 707,700 Required: Prepare an appropriate performance report for the manufacturing department. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Item Original Budget (16,000 units) Flexed Budget (17,600 units) Actual Cost Variance Direct materials $ 249,600 $ 285,300 Direct labor 206,400 230,400 Variable overhead 104,000 116,000 Fixed overhead Total 71,500 76,000 $ 631,500 $ 707,700
Western Manufacturing produces a single product. The original budget for April was based on expected production of 16,000 units; actual production for April was 17,600 units. The original budget and actual costs incurred for the manufacturing department follow: Original Budget $ 249,600 Actual Costs $ 285,300 Direct materials Variable overhead Direct labor Fixed overhead Total 206,400 104,000 71,500 230,400 116,000 76,000 $ 631,500 $ 707,700 Required: Prepare an appropriate performance report for the manufacturing department. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Item Original Budget (16,000 units) Flexed Budget (17,600 units) Actual Cost Variance Direct materials $ 249,600 $ 285,300 Direct labor 206,400 230,400 Variable overhead 104,000 116,000 Fixed overhead Total 71,500 76,000 $ 631,500 $ 707,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A7 please help......
Transcribed Image Text:Western Manufacturing produces a single product. The original budget for April was based on expected production of 16,000 units;
actual production for April was 17,600 units. The original budget and actual costs incurred for the manufacturing department follow:
Original Budget
$ 249,600
Actual Costs
$ 285,300
Direct materials
Variable overhead
Direct labor
Fixed overhead
Total
206,400
104,000
71,500
230,400
116,000
76,000
$ 631,500
$ 707,700
Required:
Prepare an appropriate performance report for the manufacturing department.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Item
Original Budget
(16,000 units)
Flexed Budget
(17,600 units)
Actual Cost
Variance
Direct materials
$
249,600
$ 285,300
Direct labor
206,400
230,400
Variable overhead
104,000
116,000
Fixed overhead
Total
71,500
76,000
$
631,500
$ 707,700
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