SHEFFIELD COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $57,200 $56.100 $1.100 Favorable Direct labor 61.100 57,600 3,500 Favorable Indirect materials 26.000 26.100 100 Unfavorable Indirect labor 24.700 24.300 400 Favorable Utilities 19.500 19,330 170 Favorable Maintenance 7.800 8.170 370 Unfavorable Total variable 196.300 191,600 4,700 Favorable Fixed costs Rent 10.300 10.300 -O- Neither Favorable nor Unfavorable Direct materials $57,200 $56,100 $1.100 Favorable Direct labor 61.100 57,600 3.500 Favorable Indirect materials 26.000 26.100 100 Unfavorable Indirect labor 24,700 24.300 400 Favorable Utilities 19.500 19.330 170 Favorable Maintenance 7.800 8.170 370 Unfavorable Total variable 196.300 191.600 4.700 Favorable Fixed costs Rent 10.300 10.300 -O- Neither Favorable nor Unfavorable Supervision 18.300 18.300 -O- Neither Favorable nor Unfavorable Depreciation 6.800 6.800 -O- Neither Favorable nor Unfavorable Total fixed 35.400 35.400 -0- Neither Favorable nor Unfavorable Total costs $231,700 $227,000 $4,700 Favorable The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780.000 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 63,000 units were produced. In September, 69,000 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.) SHEFFIELD COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Neit Budget Actual Costs noi Units Variable Costs Direct Materials $ $ $ Direct Labor Indirect Materials jven Budget Actual Costs nos its > ariable Costs Direct Materials $ $ Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs 10300 E i 10300 Rent 0 1. Indirect Materials Indirect Labor Utilities > Maintenance Total Variable Costs Fixed Costs > Rent 10300 i 10300 0 Supervision 18300 i 18300 0 6800 Depreciation 6800 i 0 35400 Total Fixed Costs 35400 i $ $ $ Total Costs