Static Budget v5. Flexible Budget The production supervisor of the Painting Department for Whitley Company agreed to the following monthly sta budget for the upcoming year: WHITLEY COMPANY Painting Department Monthly Production Bud get Wages $523,000 Utilities 34,000 Depreciation 57,000 Total $514,005 ) The actual amount spent and the actual units produced in the first three months in the Painting Department were as follows: Amount Spent Units Produced January $580,000 120,000 February 553,000 109,000 March 527,000 90,000 The Painting Department supervisor has been very pleased with this performance, since actual expe ures have been less than the monthly budget. However, the plant manager believes that the budget should not remain fixed for every month but should "ex" or adjust to the volume of work that is produced in the Painting Department. Additional budget information for the Painting Department is as follows: Wages per hour $20.00 Utility cost per direct labor hour 51.30 Direct labor hours per unit 0.20 hrs. Planned unit production 130,000 units a. Prepare a flexible budget for the actual units produced for January, February, and March in the Painting Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. If required, round per unit amounts to the nearest cent. WHITLEY COMPANY Painting Department For the Three Months Ending March 31 January February March Units of production 120,000 109,000 98,000 Wages Utilities Depreciation Total Feedback Check My Work a. For each level of production, show wages, utilities, and depreciation. Calculate the total wages by multiplying number of units produced by hours per unit, then by wages per hour. Calculate the total utilities by multiplying the total hours of production by the utility cost per hour. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Actual cost Total flexible budget Excess of actual cost over budget - V What does this comparison suggest? Has the Painting Department performed better than originally thought? No Is the department spending more than expected? Yes VSales and Production Budgets Bass Audio Company manufactures two models of speakers, U500 and $1000. Based on the following production and sales data for June. U500 $1000 Estimated inventory (units), June 1 264 66 Desired inventory (units), June 30 303 57 Expected sales volume (units): Northeast Region 3,400 3,000 Southwest Region 5,250 4,550 Unit sales price $100 $225 a. Prepare a sales budget. Enter all amounts as positive numbers. BASS AUDIO COMPANY Sales Budget For the Month Ending June 30 Product and Area Unit Sales Unit Sales Total Sales Volume Price Model U500: Northeast Region Southwest Region Total Model S1000: Northeast Region Southwest Region 10000 Total Total revenue from sales