In Sept, 68000 units were produced. Build 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 Sept as in August. (List variable costs before fixed costs.)

Blue Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. BLUE COMPANY (b1) Budget Report Assembling Department In September, 68,000 units were produ For the Month Ended August 31, 2017 Your answer is correct. each variable cost was 20% higher than Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) as in August. (List variable costs bef Difference Favorable Manufacturing Costs Budget Actual Unfavorable BLUE COMPANY Variable costs Assembling Department Flexible Budget Report Direct materials $53,760 $52,760 $1,000 Favorable For the Month Ended August 31, 2017 Direct labor 61,440 58,340 3,100 Favorable Indirect materials 25,600 25,700 100 Unfavorable Difference Indirect labor 19,200 18,730 Favorable 470 Favorable Unfavorable Utilities 22,400 22,240 160 Favorable Neither Favorable Budget Maintenance 7,680 7,940 260 Unfavorable Budget Actual Costs nor Unfavorable Total variable 190,080 185,710 4,370 Favorable Units 62000 62000 Fixed costs Vanable Costs Rent 10,500 10,500 Supervision 16,100 16,100 -0- Direct Materials Depreciation 5,400 5,400 52080 2760 (680) Unfavorable Total fixed 32,000 32,000 -O_ Dired Labor 9520 68340 1180 Favorable Total costs $222,080 $217,710 $4,370 Favorable Indirect Materials 4800 25700 (900) Unfavorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or Indited Labor 18600 18730 (130) Unfavorable at least praise for a job well done. The company president, however, is unhappy with the results for August because only 62,000 units were produced. mites 21700 22240 (540) Unfavorable Maintenance 7440 7940 (500) Unfavorable Total Variable Costs 184140 185710 1570) Unfavorable Fixed Costs Your answer is correct. Rent 10500 10500 Neither Favorable nor Unfavorable State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) Supervision 16100 16100 Neither Favorable nor Unfavorable The formula is $ Depreciation 5400 5400 Neither Favorable nor Unfavorable 32000 Total Fixed Costs 2000 32000 Neither Favorable nor Unfavorable + variable costs of s Pp pp 2.97 Total Costs per unit. 216140 217710 (1570) Unfavorable SHOW SOLUTION SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM LINK TO TEXT VIDEO: SIMILAR PROBLEM LINK TO TEXT LINK TO TEXT Attempts: 1 of 10 used Attempts: 8 of 10 used