q4-4

Sandhill Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Question 4 of 4 /16 \begin{tabular}{|c|c|c|c|c|} \hline Direct materials & $50,840 & $49,840 & $1,000 & Favorable \\ \hline Direct labor & 55,800 & 52,500 & 3,300 & Favorable \\ \hline Indirect materials & 27,280 & 27,480 & 200 & Unfavorable \\ \hline Indirect labor & 18,600 & 18,180 & 420 & Favorable \\ \hline Utilities & 18,600 & 18,460 & 140 & Favorable \\ \hline Maintenance & 9,920 & 10,220 & 300 & Unfavorable \\ \hline Total variable & 181,040 & 176,680 & 4,360 & Favorable \\ \hline \multicolumn{5}{|l|}{ Fixed costs } \\ \hline Rent & 11,700 & 11,700 & -0 & Neither Favorable nor Unfavorable \\ \hline Supervision & 18,600 & 18,600 & -0 & Neither Favorable nor Unfavorable \\ \hline Depreciation & 7,700 & 7.700 & -0 & Neither Favorable nor Unfavorable \\ \hline Total frxed & 38,000 & 38,000 & -0 & Neither Favorable nor Unfavorable \\ \hline Total costs & $219.040 & $214,680 & $4,360 & Favorable \\ \hline \end{tabular} The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, es. 1.25.) The formula is is t variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List varlable costs before fixed costs) Question 4 of 4 \begin{tabular}{|l|l|} SANDHILCOMPANYAssenblingDepartmentFlexibleBudgetReportFortheMonthEndedAugust31,2022 & FavorableUnfavorableNeitherFavorablenorUnfavorable \\ Budget & Actual Costs \end{tabular} s s 5 In September, 66,000 units were produced, Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10x higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (Ust varlable costs before foved costs.)