Problem 14-3A (Part Level Submission) Sarasota Conmpany uses budgets in controlling costs. The August 20117 budget report for the company's Assembling Department is as follows. SARASOTA COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $53,680 $52,580 1,100 Favorable 59,780 3,300 Favorable Direct labar 56,480 Indirect materials 29,280 29,380 100 Unfavorable Indirrct labor 19,520 19,060 4G0 Favorable Utilities 15,250 15,140 110 Favorable 12,200 12,530 330 Unfavorable Maintenance 189,710 185,170 4,510 Favprable Tatal variable Fixed costs 11,700 11,700 Rent -0- Supervision 18,500 18,500 -D- 7,300 -0 7,300 Depreciation 37,500 37,500 -0- Tatal fixed $4,540 Favorable $227,210 $222,670 Total costs The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 units 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 only 59,000 units were produced. *(a) Your answer is correct State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $57500 variable costs of $5.11 per unit. Attempts: 1 of 10 used (b1) Your answer is correct. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) SARASOTA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 59000 I59000 TUnits TVariable Costs Direct Materials $151920 s52580 $660Unfavorable Direct Labor 57820 156480 T1340 TFavora ble L060 Unfavorable Indirect Materials T28320 T29380 TIndirect Labor) T18880 T180 TUnfavorable T19060 TUtilities 390 TUnfavorable T14750 T15140 130 Unfavorable TMaintenance| T12530 T 185170 T11800 Total Variable Costs 183490 T1680TUnfavorable TFixed Costs TONeither Favorable nor Unfavorable Rent T11700 T11700 Supervision TO TNeither Favorable nor Unfavorable T18500 T18500 300 T7300 TO INeither Favorable nor Unfavorable] Depreciation Neither Favorable nor Unfavorable 37500 37500 Total Fixed Costs $222670 1680Unfavorable Total Costs t220990 *(c) In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) cach variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) PANT Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Attemats:0 of 10 us
