Question
The following budgeted and actual volume and cost data are for January of this year: (12 points) Budget Actual Volume 40,000 36,000 Budgeted manufacturing costs:
The following budgeted and actual volume and cost data are for January of this year: (12 points)
| Budget | Actual | |
| Volume | 40,000 | 36,000 |
| Budgeted manufacturing costs: | ||
| Variable costs per unit: | ||
| Direct materials | $30.00 | |
| Direct labor | 15.00 | |
| Overhead | 5.00 | |
| Total fixed overhead costs | $400,000 | |
| Actual manufacturing costs: | ||
| Direct materials | $1,160,000 | |
| Direct labor | 580,000 | |
| Variable overhead | 180,000 | |
| Fixed overhead | 396,000 |
Prepare a static (40,000) budget analysis of production costs for January of this year.
Prepare a flexible (36,000) budget analysis of production costs for January of this year
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