Question
Culver Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. CULVERCOMPANY Budget Report Assembling Department
Culver Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows.
CULVERCOMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Difference
Manufacturing Costs
Budget
Actual
Favorable
Unfavorable
Variable costsDirect materials$51,240
$50,140
$1,100
FavorableDirect labor59,780
56,580
3,200
FavorableIndirect materials25,620
25,820
200
UnfavorableIndirect labor21,960
21,560
400
FavorableUtilities18,300
18,170
130
FavorableMaintenance6,100
6,450
350
UnfavorableTotal variable183,000
178,720
4,280
FavorableFixed costsRent10,100
10,100
-0-
Supervision18,000
18,000
-0-
Depreciation6,200
6,200
-0-
Total fixed34,300
34,300
-0-
Total costs$217,300
$213,020
$4,280
Favorable
The monthly budget amounts in the report were based on an expected production of61,000units per month or732,000units 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 only59,000units were produced.
Display a budget report for August using flexible budget data.(List variable costs before fixed costs.)
CULVERCOMPANY
Assembling Department
Flexible Budget Report
For the Month Ended August 31, 2017
For the Quarter Ended August 31, 2017
For the Year Ended August 31, 2017
Difference
Budget
Actual Costs
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
$
$
$
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Indirect Labor
Indirect Materials
Maintenance
Rent
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Units
Utilities
Variable Costs
$
$
$
Favorable
Unfavorable
Neither Favorable nor Unfavorable
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Payroll Accounting 2017
Authors: Jeanette Landin, Paulette Schirmer
3rd edition
1259572188, 1259572180, 1259742512, 9781259742514, 978-1259572180
