Prepare a monthly overhead flexible budget and budget report.

ACC 3020 - Fall 2016 Excel Case #3 - Budgetary Control Enter your WSU Access ID below. Access ID: fm0239 Consider the following information from Grantham Company, then see the instructions that follow. Grantham Company manufactures dog whistles. The following information is available from the budgetary control system for 2016, and was used to create the master budget. Grantham applies overhead using an activity index of direct labor hours. Variable Costs Indirect labor Indirect materials Factory utilities Factory repairs Fixed Costs Depreciation Insurance Property taxes Supervision Rate per direct labor hour $0.51 0.31 0.89 0.52 Amount per year $24,500 10,700 6,200 64,000 The master overhead budget was prepared with the expectation that 462,000 direct labor hours would be worked during the year. In August, 39,500 direct labor hours were worked. At that level of activity, actual costs were as shown below: Variable Costs Indirect labor Indirect materials Factory utilities Factory repairs Fixed Costs Depreciation Insurance Property taxes Supervision $0.54 per labor hour 0.34 per labor hour 0.91 per labor hour 0.53 per labor hour $2,042 825 500 5,250 Instructions: Prepare a monthly manufacturing overhead flexible budget, assuming production levels ranging from 30,000 to 45,000 direct labor hours, in increments of 5,000. Prepare a budget report for August comparing actual results to the flexible budget. Explain whether costs were successfully controlled and how you can tell. THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and customizable production cost report, using formulas whenever possible instead of keyed in values. No numeric values except the ones shown above should need to be keyed in. Vesper Company Production Cost Report For the Month ended April 30, 2016 Equivalent Units Quantities Units to be accounted for Work in process, March 1 Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units Costs Unit costs Total cost Equivalent units Unit costs (a) (b) Physical Conversion Units Materials Costs 1 0 1 0 1 1 0 1 1 0 0 0 Materials Conversion Costs $11,200 1 ### Err:509 0 Err:509 Costs to be accounted for Work in process, March 1 Started into production Total costs Cost Reconciliation Schedule Cost accounted for Transferred out Work in Process, March 31 Materials Conversion costs Total costs Total Err:509 Err:509 $825 Err:509 Err:509 Err:509 $12,156 Err:509 Err:509 Err:509