Problem 23-4A a (Video)

Swifty Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2020, are as shown below.

		Budget		Difference from Budget
Sales		$2,510,000		$49,000	Favorable
Cost of goods sold
Variable		1,304,700		37,300	Favorable
Controllable fixed		207,100		3,200	Unfavorable
Selling and administrative
Variable		224,700		7,500	Unfavorable
Controllable fixed		47,800		1,600	Unfavorable
Noncontrollable fixed costs		67,400		3,100	Unfavorable

In addition, Swifty incurs $180,500 of indirect fixed costs that were budgeted at $176,000. Twenty percent (20%) of these costs are allocated to the Patio Furniture Division. Prepare a responsibility report for the Patio Furniture Division for the year.

RRAMBI F COMPANY Budget Report Assembling Department For the Month Fnderd August 31, 2020 Difference Ncither Favorablc nor Unfavorablo Manufacturing Costs Budgct Actual Variable costs Direct materials Direct labor Indiroct materials Indirect labor $51,240 $50,240 $1,000 ravorable 59,780 56,680 3,100 Favorable 25,620 19,520 19,090 3 Favorable 15,250 15,080 170 Favorable 12,200 12,400 200 Unfavorable 25,920 300 Unfavorable 183,610 179,410 4,200 Favorable Total variable Fixed costs 11,800 11,800 0-Neither Favorable nor Unfavorable 19,000 19,000 0 Neither Favorable nor Unfavorable 7,500 7,500 Neither Favorable nor Unfavorable 3B 300 38,300 0- Neither Favorable nor Unfavarable Total fixed 221,910 $217,710 $4,200 Favorable 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 ycar. The Assembling Department manager is plcased with the report and expects a raise, or at lcast 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) 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.) BRAMBLE COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs