Problem 25-03A a, b1, c (Video) Vaughn Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. VAUGHN COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $55,040 $53,940 $1,100 Favorable Direct labor 62,720 59,320 3,400 Favorable Indirect materials 30,720 30,820 100 Unfavorable Indirect labor 21,760 21,260 500 Favorable Utilities 16,000 15,890 110 Favorable Maintenance 11,520 11,650 130 Unfavorable Total variable 197,760 192,880 4,880 Favorable Fixed costs Rent 11,300 11,300 -0- Neither Favorable nor Unfavorable Supervision 17,900 17,900 -- Neither Favorable nor Unfavorable Depreciation 5,000 5,000 -- Neither Favorable nor Unfavorable Total fixed 34,200 34,200 -- Neither Favorable nor Unfavorable (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs In September, 68,000 units were produced. Prepare 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 September as in August. (List variable costs before fixed costs.) VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Problem 25-03A a, b1, c (Video) Vaughn Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. VAUGHN COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $55,040 $53,940 $1,100 Favorable Direct labor 62,720 59,320 3,400 Favorable Indirect materials 30,720 30,820 100 Unfavorable Indirect labor 21,760 21,260 500 Favorable Utilities 16,000 15,890 110 Favorable Maintenance 11,520 11,650 130 Unfavorable Total variable 197,760 192,880 4,880 Favorable Fixed costs Rent 11,300 11,300 -0- Neither Favorable nor Unfavorable Supervision 17,900 17,900 -- Neither Favorable nor Unfavorable Depreciation 5,000 5,000 -- Neither Favorable nor Unfavorable Total fixed 34,200 34,200 -- Neither Favorable nor Unfavorable (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs In September, 68,000 units were produced. Prepare 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 September as in August. (List variable costs before fixed costs.) VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs