ed cost mare flexible 2 time P10-3B Hardesty Company uses budgets in controlling costs. The May 2017 budget report for the company's Packaging Department is as follows. Hardesty Company Budget Report Packaging Department For the Month Ended May 31, 2017 Difference Favorable F Unfavorable U Budget Actual Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs $ 40,000 45,000 15,000 12,500 10,000 7,500 130,000 $ 41,000 47,300 15,200 13,000 9,600 8,000 134,100 $1,000 U 2,300 U 200 U 500 U 400 F 500 U 4,100 U 10,000 7,000 4,000 21,000 $151,000 10,000 7,000 4,000 21,000 $155,100 $4,100 U The monthly budget amounts in the report were based on an expected production of 50,000 units per month or 600,000 units per year. The company president was displeased with the department manager's performance. The department manager, who thought he had done a good job, could not understand the unfavorable results. In May, 55,000 units were produced. 000 Instructions (a) State the total budgeted cost formula. (1) Prepare a budget report for May using flexible budget data. Why does this report pro- vide a better basis for evaluating performance than the report based on static budget. data? (c) In June, 40,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 20% less in June than its actual cost in May. and (2) fixed costs were the same in the month of June as in May. -000 280 E10.13 (LO 3), AP Fey Company's organization chart includes the president; the vice president of pro- duction; three assembly plants-Dallas, Atlanta, and Tucson; and two departments within each plant- Machining and Finishing. Budget and actual manufacturing cost data for July 2020 are as follows. Finishing Department-Dallas: direct materials $42,500 actual, $44,000 budget; direct labor $83,400 actual, $82,000 budget; manufacturing overhead $51,000 actual, $49,200 budget. Machining Department-Dallas: total manufacturing costs $220,000 actual, $219,000 budget. Atlanta Plant: total manufacturing costs $424,000 actual, $420,000 budget. Tucson Plant: total manufacturing costs $494,200 actual, $496,500 budget. The Dallas plant manager's office costs were $95,000 actual and $92,000 budget. The vice president of production's office costs were $132,000 actual and $130,000 budget. Office costs are not allocated to departments and plants. Instructions Using the format shown in Illustration 10.19, prepare the reports in a responsibility system for: The Finishing Department - Danas. b. The plant manager-Dallas. The vice president of production