Cheyenne Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. CHEYENNE COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Budget Actual Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities $52,460 57,340 26,840 18,300 15,250 6,100 $51,460 53,940 27,140 17,890 15,060 6,350 $1,000 Favorable 3,400 Favorable 300 Unfavorable 410 Favorable 190 Favorable Maintenance 250 Unfavorable Total variable 176,290 171,840 4,450 Favorable Fixed costs -0- Rent Supervision Depreciation Total fixed -0- 11,000 18,000 7,900 36,900 $213,190 11,000 18,000 7,900 -0- -0- 36,900 $208,740 Total costs $4,450 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. (a) Your answer is correct. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) 36900 2.89 The formula is su + variable costs of $ per unit. (61) Your answer is correct. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) CHEYENNE 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 50740 51460 720|| Unfavorable Direct Labor 55460 53940 -1520 Favorable Indirect Materials 25960 27140 1180 Unfavorable Indirect Labor 17700 17890 190 Unfavorable Utilities 14750 15060 310|| Unfavorable Maintenance 5900 6350 450 Unfavorable Total Variable Costs 170510 171840 1330 Unfavorable Fixed Costs Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 59000 59000 Variable Costs Direct Materials 50740 51460 720 Unfavorable Direct Labor 55460 53940 -1520 Favorable Indirect Materials 25960 27140 1180 Unfavorable Indirect Labor 17700 17890 190 Unfavorable Utilities 14750 15060 310 Unfavorable Maintenance 5900 6350 450 Unfavorable Total Variable Costs 170510 171840 1330 Unfavorable Fixed Costs Rent 11000 11000 0 Neither Favorable nor Unfavorable v Supervision 18000 18000 0 Neither Favorable nor Unfavorable v Depreciation 7900 7900 0 Neither Favorable nor Unfavorable Total Fixed Costs 36900 36900 0 Neither Favorable nor Unfavorable v Total Costs 207410 208740 1330 Unfavorable CALCULATOR PRINTER VERSION A BACK NEX Tui uniSCi is pur ciun comCCL. . In September, 65,000 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. (List variable costs before fixed costs.) CHEYENNE COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 65000 65000 Variable Costs Direct Materials 51460 Unfavorable Direct Labor 53940 Favorable Indirect Materials 27140 Unfavorable Indirect Labor 17890 Unfavorable Utilities 15060 Unfavorable Maintenance 6350 Unfavorable Total Variable Costs 171840 Unfavorable Fixed Costs CALCULATOR PRINTER VERSION BACK NEX Direct Materials 51460 Unfavorable Direct Labor 53940 Favorable Indirect Materials 27140 Unfavorable Indirect Labor 17890 Unfavorable Utilities 15060 Unfavorable Maintenance 6350 Unfavorable X Total Variable Costs 171840 Unfavorable Fixed Costs Rent 11000 11000 0 Neither Favorable nor Unfavorable Supervision 18000 18000 0 Neither Favorable nor Unfavorable Depreciation 7900 7900 0 Neither Favorable nor Unfavorable Total Fixed Costs 36900 36900 0 Neither Favorable nor Unfavorable v Total Costs Unfavorable LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 10 used