question C
Riverbed Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. RIVERBED COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Manufacturing Costs Budget Actual Unfavorable Variable costs Direct materials $50,020 $48,920 $1,100 Favorable Direct labor 54.900 52,000 2.900 Favorable ndirect materials 29 29,580 100 Unfavorable 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- Supervision 17.400 17,400 -0- Depreciation 7,500 7.500 Total fixed 37.700 37.700 -0- Total costs $221.310 $217.260 $4,050 Favorable -0- 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 ralse, 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. Tine Try Ouage une repere year. The Assembling Department manager is pleased with the report and expects a raise, or at le company president, however, is unhappy with the results for August because only 59,000 units w (a) Your answer is correct. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, eg. 125.) The formula is $ 37.700 + variable costs of $ 3.01 pel e Textbook and Media (61) Your answer is correct For the Month Ended Aug 31, 2017 Budget Actual Costs Units 59.000 59.000 Variable Costs Direct Materials 48380 5 48920 Direct Labor 33100 52000 i 110 Indirect Materials 28320 29580 124 Indirect Labor 20060 202.90 23 Utilities 20650 21100 5 Maintenance 7080 7590 1 51 Total Variable costs 177590 179560 1.97 Fleed Costs Rent 12.800 12000 Supervision 19400 17.00 precision 7500 17500 Total 37700 33 Total Costs $ 216790 $ R17200 19 DOLL Actual Casts Neither Favorable nor Unfavorable 59.000 59.000 18920 500 i Unfavorable 53100 52000 1 11001 Favorite 28320 29580 i 1260 Untivorable 20084 i 20290 * 230 Unfavorable 20650 21180 530 Ube 7080 7590 510 Urtavo 377590 179560 1970 Unfavorable 12.800 12800 0 Nehr Fotvorable 17400 37400 Neither Favor Unfavorable 7500 7500 Neither Favorable or Unfavorite 377001 2007 Noite Forenar Un 215290 217200 1970 1 wale e Textbook and Media Attempts: 1 of 3 used DELL 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.) RIVERBED COMPANY Assembling Department Flexible Budget Report DIA Fas Unfi Neither Budget Actual Costs nor Ur 9 MB DLL Question 4 of 4 10/15 III Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ 5 $ $
