CH 23-P23-3 View BEU esert DrawPage Layout Formulas Data Review Liberation Sans 12A A SEE BLU A General 2 Wrap Text Merge & Conter v Sve Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable F Unfavorable U Budget Actual Manufacturing Cost Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable 48,000 54,000 24,000 18,000 15,000 12,000 171.000 47.000 51,200 24,200 17,500 14,900 12 400 167,200 $1.000 F 2,800 F 200 U 500 F 100 F 400 U 3,800 F Fixed costs Rent Supervision Depreciation Totalfixed 12.000 17,000 6,000 35,000 12,000 17,000 6,000 35,000 Total costs $ 206,000 $ 202,200 $3,800 F 30 The monthly budget amounts in the report were based on an expected production of 60,000 units per month of 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise 32 or at least praise for a job well done. The company president, however, is unhappy with the results for August 3 because only 55,500 units were produced 34 as instructions 36 (a) State the total monthly budgeted cost formula. 376) Prepare a budget report for August using flexible budget data. Why does this report provide a better 30 basis for evaluating performance than the report based on state budget data? c) in September, 65.800 units were produced. Prepare the budget report using flexible budget data, assuming 40 (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August 42 NOTE: Enter a number in cells requesting a value enter either a number or a formula in cells with a "1" P23-3A MacBook Autosaven BES 5- HomeInsert Draw Page Layout Formulas Data Review View 12 AA E Liberation Sans BIUL E E Wrap Text Merge & Ceny A K L 46 (a) State the total monthly budgeted cost formula. Fixed cost Value + variable cost of Value per unit 52 (0) Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? RATCHET COMPANY Assembling department Flexible budget Report For the Month Ended August 31, 2020 Budget at 55,500 units Units Actual Costs 55,500 units Difference Variance Fav Amount Un ? Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities ? ? ? ? Value Value Value Value Value Value Maintenance ? ? Total variable Fixed costs Rent Supervision Depreciation Total fixed Value Value Value Value Value Value 7 Total costs Your comments on the department's performance for August P23-3A @ Insert HES = Draw Page Layout Formulas Home Data Review View A S E 2 Liberation Sans BIU 12 BEL A A Wrap Text Merge & Center y E 87 (c) in September, 65,800 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August RATCHET COMPANY Assembling department Flexible budget Report For the Month Ended September 30, 2020 Budget at 65,800 units Actual Costs 65,800 units Difference Variance Fav Amount Un Units 101 Variable costs Direct materials Direct labor Indirect materials Indirect labor Usities Maintenance Total variable 105 105 109 110 111 Fixed costs Rent Supervision Depreciation Total fixed Value Value Value Value Value Value Value Value Value Total costs Your comments on the department's performance for September 120 P23-3A MacE