Mussatto Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing

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Mussatto Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead $18. Annual budgeted fixed manufacturing overhead costs are $96,000 for depreciation and $45,600 for supervision.
In the current month, Mussatto produced 6,000 units and incurred the following costs: direct materials $38,850, direct labor $76,440, variable overhead $116,640, depreciation $8,000 and supervision $4,000.
Prepare a flexible budget report. (Note: You do not need to prepare the heading.) Were costs controlled?

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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