Wages per hour $$16\mathrm{.}00$

Utility cost per direct labor hour $$1\mathrm{.}30$

Direct labor hours per unit $0\mathrm{.}25$

Planned monthly unit production $137,000$

Question Content Area

a$.$ Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

Celtic Company$-$Machining Department

Flexible Production Budget

For the Three Months Ending March $31$

January February March

Units of production fill in the blank bbd$93100$a$012$f$9$d$\_1$

$126,000$

fill in the blank bbd$93100$a$012$f$9$d$\_2$

$114,000$

fill in the blank bbd$93100$a$012$f$9$d$\_3$

$103,000$

Wages $fill in the blank bbd$93100$a$012$f$9$d$\_4$

$fill in the blank bbd$93100$a$012$f$9$d$\_5$

$fill in the blank bbd$93100$a$012$f$9$d$\_6$

Utilities fill in the blank bbd$93100$a$012$f$9$d$\_7$

fill in the blank bbd$93100$a$012$f$9$d$\_8$

fill in the blank bbd$93100$a$012$f$9$d$\_9$

Depreciation fill in the blank bbd$93100$a$012$f$9$d$\_10$

fill in the blank bbd$93100$a$012$f$9$d$\_11$

fill in the blank bbd$93100$a$012$f$9$d$\_12$

Total $fill in the blank bbd$93100$a$012$f$9$d$\_13$

$fill in the blank bbd$93100$a$012$f$9$d$\_14$

$fill in the blank bbd$93100$a$012$f$9$d$\_15$

Question Content Area

b$.$ Compare the flexible budget with the actual expenditures for the first three months.

January February March

Actual cost $fill in the blank $5950$e$2$f$49$f$90$fb$5\_1$

$fill in the blank $5950$e$2$f$49$f$90$fb$5\_2$

$fill in the blank $5950$e$2$f$49$f$90$fb$5\_3$

Total flexible budget fill in the blank $5950$e$2$f$49$f$90$fb$5\_4$

fill in the blank $5950$e$2$f$49$f$90$fb$5\_5$

fill in the blank $5950$e$2$f$49$f$90$fb$5\_6$

Excess of actual cost over budget $fill in the blank $5950$e$2$f$49$f$90$fb$5\_7$

$fill in the blank $5950$e$2$f$49$f$90$fb$5\_8$

$fill in the blank $5950$e$2$f$49$f$90$fb$5\_9$

What does this comparison suggest?

The Machining Department has performed better than originally thought.

The department is spending more than would be expected.