CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Grouper Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. GROUPER COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Budget Actual Favorable Unfavorable Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities $50,020 59,780 24,400 20,740 15,250 7,320 $48,920 56,480 24,700 20,340 15,130 7,610 $1,100 Favorable 3,300 Favorable 300 Unfavorable 400 Favorable 120 Favorable 290 Unfavorable 4,330 Favorable Maintenance Total variable 177,510 173,180 Fixed costs Rent -0- 12,900 17,500 7,500 12,900 17.500 Supervision Depreciation Total fixed 7,500 -0- 37,900 37,900 -0- Total costs $215,410 $211,080 $4,330 Favorable The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 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 59,000 units were produced. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) S GROUPER COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 59000 59000 Variable Costs Direct Materials 48380 48,920 540 Unfavorable Direct Labor 53100 56,480 3380 Favorable Indirect Materials 28320 24,700 3620 Unfavorable Indirect Labor 20060 20,340 280 Unfavorable Utilities 20650 15,130 5520 Unfavorable Maintenance 7080 7.610 53011 Unfavorable acy Policy 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. ES Indirect Materials 28320 24,700 3620 Unfavorable Indirect Labor 20060 20,340 280 Unfavorable Utilities 20650 15,130 5520 Unfavorable Maintenance 7080 Ly. 7,610 530 Unfavorable Total Variable Costs 177590 173180 4410||| Unfavorable Fixed Costs Rent 12900 12900 0 Neither Favorable nor Unfavorable Supervision 17500 17500 0 Neither Favorable nor Unfavorable Depreciation 7500 7500 Neither Favorable nor Unfavorable Total Fixed Costs 37900 37900 Neither Favorable nor Unfavorable Total Costs 50800 211080 -160280 Unfavorable LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR