RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable 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 -0- Neither Favorable nor Unfavorable Supervision 18,000 18,000 -0- Neither Favorable nor Unfavorable Depreciation 6,200 6,200 -0 - Neither Favorable nor Unfavorable Total fixed 34,300 34,300 -0- Neither Favorable nor Unfavorable 717 200 212.02. 4 200 - Depreciation Total fixed Total costs 6,2006, 2007-O- Neither Favorable nor Unfavorable 34,300 34,300 -0- Neither Favorable nor Unfavorable $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 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 because only 59,000 units were produced. (a) & (b) Your answer is correct. a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is = 34300. variable costs of 3.00 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Unit 59000 59000 Variable Costs Direct Materials 49560 80 Unfavorable Direct Labor 40 Favorable Indirect Materials 24780 1040 Unfavorable Indirect Labor 21560 320 unfavorable T Indirect Labor 21560 320 Tunfavorable Utilities 470 Tunfavorable - Maintenance 5900 6450 550 Tunfavorable Total Variable Costs 177000 178720 1720 Unfavorable Fixed Costs Rent Neither Favorable nor Unfavorable Supervision Neither Favorable nor Unfavorable Depreciation DAPAT Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable Total Costs Unfavorable Click if you would like to Show Work for this question: Open Show Work 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT VIDEO SIMILAR