Question 4 of 4 4.7 / 15 TIL View Policies Show Attempt History Current Attempt in Progress Sunland Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Sunland Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $51,240 $50,140 $1,100 Favorable Direct labor 59,780 56,580 3,200 Favorable Indirect materials 25,620 25,820 200 Unfavorable Indirect labor 21,960 21,560 400 Favorable Utilities 18,300 18,170 130 Favorable Maintenance 6,100 6,450 350 Unfavorable Total variable 183,000 178,720 4,280 Favorable Fixed costs Rent 10,100 10,100 -O- Neither Favorable nor Unfavorable Supervision 18,000 18,000 -O- Neither Favorable nor Unfavorable Depreciation 6,200 6,200 -O- Neither Favorable nor Unfavorable Total fixed 34,300 34,300 -O- Neither Favorable nor Unfavorable Total costs $217,300 $213,020 $4,280 Favorable 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) & (b) o 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.) The formula is $ 34,300 + variable costs of $ 3.00 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) SUNLAND COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Budget Actual Costs Units 59,000 59,000 Variable Costs Direct Materials 50,140 Direct Labor 56,580 10000 Indirect Materials 25,820 Indirect Labor 21,560 Utilities 18,170 Maintenance 6,450 Total Variable Costs 178,720 Fixed Costs Rent 10,100 10,100 Supervision 18,000 18,000 bole Depreciation 6,200 6,200 Total Fixed Costs 34,300 34,300 Total Costs $ $ 213,020 (a) & (b) 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.) The formula is $ 34,300 + variable costs of $ 3.00 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) SUNLAND COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs 59,000 50,140 56,580 25,820 21,560 18,170 6,450 178,720 10.100 0 Neither Favorable nor Unfavorable , 18,000 0 Neither Favorable nor Unfavorable , 6,200 0 Neither Favorable nor Unfavorable 34,300 0 Neither Favorable nor Unfavorable (c) In September, 65,000 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.) SUNLAND COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 202 Budget Actual Costs Units Variable Costs Direct Materials $ $ $ Direct Labor Indirect Materials 4 Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent a Supervision Depreciation Total Fixed Costs Total Costs $ e Textbook and Media Save for Later Last saved 19 hours ago. Attempts: 0 of 5 used Submit Answer (c) In September, 65,000 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.) SUNLAND COMPANY Assembling Department Flexible Budget Report or the Month Ended September 30, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ $ $ $ e Textbook and Media Save for Later Last saved 19 hours ago. Attempts: 0 of 5 used Submit
