Question
Problem 23-03A a, b1, c Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows.
Problem 23-03A a, b1, c
Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows.
RATCHET COMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2020
Difference
Manufacturing Costs
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Variable costsDirect materials$50,020
$48,920
$1,100
FavorableDirect labor54,900
52,000
2,900
FavorableIndirect materials29,280
29,580
300
UnfavorableIndirect labor20,740
20,290
450
FavorableUtilities21,350
21,180
170
FavorableMaintenance7,320
7,590
270
UnfavorableTotal variable183,610
179,560
4,050
FavorableFixed costsRent12,800
12,800
-0-
Neither Favorable nor UnfavorableSupervision17,400
17,400
-0-
Neither Favorable nor UnfavorableDepreciation7,500
7,500
-0-
Neither Favorable nor UnfavorableTotal fixed37,700
37,700
-0-
Neither Favorable nor UnfavorableTotal costs$221,310
$217,260
$4,050
Favorable
The monthly budget amounts in the report were based on an expected production of61,000units per month or732,000units 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 only59,000units were produced.
I am on submission part C
Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows.
RATCHET COMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2020
Difference F, UF or Neither
Manufacturing Costs Budget Actual
Variable costs
Direct materials $50,020 $48,920 $1,100 F
Direct labor 54,900 52,000 $ 2,900 F
Indirect materials 29,280 29,580 $300 UF
Indirect labor 20,740 20,290 $ 450 Favorable
Utilities 21,350 21,180 $170 Favorable
Maintenance 7,320 7,590 $270 Unfavorable
Total variable 183,610 179,560 $4,050 Favorable
Fixed costs
Rent 12,800 12,800 -0- Neither
Supervision 17,400 17,400 -0- Neither
Depreciation 7,500 7,500 -0- Neither
Total fixed 37,700 37,700 -0- Neither
Total costs $221,310 $217,260 $4,050 Favorable
The monthly budget amounts in the report were based on an expected production of61,000units per month or732,000units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only59,000units were produced.
Your answer is partially correct.
(a)State the total monthly budgeted cost formula.(Round cost per unit to 2 decimal places, e.g. 1.25.)
Direct Labor of 52,200 wrong and 200 wrong
Total Variable costs 176,690 wrong and 2870 wrong
Total costs of 214,390 wrong and 2,870 wrong
Everything else is correct in the attachment
State the total monthly budgeted cost formula.(Round cost per unit to 2 decimal places, e.g. 1.25.)
The formula is$
+ variable costs of $
per unit.
(b)Prepare a budget report for August using flexible budget data.(List variable costs before fixed costs.)
RATCHET COMPANY
Assembling Department
Flexible Budget Report
For the Month Ended August 31, 2020
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
The problem I now need help with is part C
In September,65,000units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was10% 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.)
RATCHET COMPANY
Assembling Department
Flexible Budget Report
For the Month Ended September 30, 2020
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Business Law Text And Cases
Authors: Kenneth W. Clarkson, Roger LeRoy Miller
15th Edition
0357129636, 978-0357129630
