Question
FlintCompany uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. FLINTCOMPANY Budget Report Assembling Department For
FlintCompany uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows.
FLINTCOMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Difference
Manufacturing Costs
Budget
Actual
Favorable
Unfavorable
Variable costs
Direct materials
$48,380
$47,280
$1,100
Favorable
Direct labor
57,820
54,520
3,300
Favorable
Indirect materials
25,960
26,060
100
Unfavorable
Indirect labor
21,240
20,790
450
Favorable
Utilities
20,650
20,510
140
Favorable
Maintenance
7,080
7,190
110
Unfavorable
Total variable
181,130
176,350
4,780
Favorable
Fixed costs
Rent
12,100
12,100
-0-
Supervision
19,000
19,000
-0-
Depreciation
7,300
7,300
-0-
Total fixed
38,400
38,400
-0-
Total costs
$219,530
$214,750
$4,780
Favorable
The monthly budget amounts in the report were based on an expected production of59,000units per month or708,000units 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 only57,000units were produced.
Prepare a budget report for August using flexible budget data.(List variable costs before fixed costs.)
FLINTCOMPANY
Assembling Department
Flexible Budget Report
For the Quarter Ended August 31, 2017
For the Month 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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FlintCompany uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows.
FLINTCOMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Difference
Manufacturing Costs
Budget
Actual
Favorable
Unfavorable
Variable costs
Direct materials
$48,380
$47,280
$1,100
Favorable
Direct labor
57,820
54,520
3,300
Favorable
Indirect materials
25,960
26,060
100
Unfavorable
Indirect labor
21,240
20,790
450
Favorable
Utilities
20,650
20,510
140
Favorable
Maintenance
7,080
7,190
110
Unfavorable
Total variable
181,130
176,350
4,780
Favorable
Fixed costs
Rent
12,100
12,100
-0-
Supervision
19,000
19,000
-0-
Depreciation
7,300
7,300
-0-
Total fixed
38,400
38,400
-0-
Total costs
$219,530
$214,750
$4,780
Favorable
The monthly budget amounts in the report were based on an expected production of59,000units per month or708,000units 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 only57,000units were produced.
Prepare a budget report for August using flexible budget data.(List variable costs before fixed costs.)
FLINTCOMPANY
Assembling Department
Flexible Budget Report
For the Quarter Ended August 31, 2017
For the Month 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
eTextbook and Media
Save for Later
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Core Concepts Of Accounting Information Systems
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
11th Edition
9780470507025, 0470507020
