Chapter 21 Homework (Application)Book Show Me HowCalulator Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year Niland Company Machining Department Monthly Production Budget Wages Utilities Depreciatiorn $427,000 21,000 36,000 $484,00D Total The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January$457,000 February 434,000 March The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been significantily less than 98,000 89,000 80,000 413,000 the monthly static budget of 484,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour Utility cost per direct labor hour Direct labor hours per unit Planned monthly unit production 106,000 $20 $1 0.2 Previous Next Check My Work All work saved. Save and Exit Submit Assignment for Gra ment Score: 20.88% a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. 1 Sear required, use per unit amounts carried out to two decimal places Niland Company For the Three Months Ending March 31 January February March Units of production 98,000 89,000 80,000 Wages Supporting calculations: 98,000 89,000 80,000 Units of production Hours per unit Total hours of production Wages per hour Total wages Total hours of production Utlity costs per hour Total utilities Feedback Check My Work Previous Next eck My Work All work saved Save and ExitSubmit Assignment for Grading ent Score: 20.88% 12 24 Show Me How For each level of production, show wages, utilities, and depreciation. Leaming Objective 2, Learning Objective 4. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought. No The department is spending more than would be expected. Yes Feedback Check My Work Consider performance and spending. Learning Objective 2, Learning Objective 4 Feedback Check My Work Partially correct Chapter 21 Homework (Application)Book Show Me HowCalulator Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year Niland Company Machining Department Monthly Production Budget Wages Utilities Depreciatiorn $427,000 21,000 36,000 $484,00D Total The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January$457,000 February 434,000 March The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been significantily less than 98,000 89,000 80,000 413,000 the monthly static budget of 484,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour Utility cost per direct labor hour Direct labor hours per unit Planned monthly unit production 106,000 $20 $1 0.2 Previous Next Check My Work All work saved. Save and Exit Submit Assignment for Gra ment Score: 20.88% a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. 1 Sear required, use per unit amounts carried out to two decimal places Niland Company For the Three Months Ending March 31 January February March Units of production 98,000 89,000 80,000 Wages Supporting calculations: 98,000 89,000 80,000 Units of production Hours per unit Total hours of production Wages per hour Total wages Total hours of production Utlity costs per hour Total utilities Feedback Check My Work Previous Next eck My Work All work saved Save and ExitSubmit Assignment for Grading ent Score: 20.88% 12 24 Show Me How For each level of production, show wages, utilities, and depreciation. Leaming Objective 2, Learning Objective 4. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought. No The department is spending more than would be expected. Yes Feedback Check My Work Consider performance and spending. Learning Objective 2, Learning Objective 4 Feedback Check My Work Partially correct