Wade Companystatic Budget Reportdifferencebudgetac
Brief Exercise 22-5
Gundy Company expects to produce 1,220,400 units of Product XX in 2017. Monthly production is expected to range from 73,100 to 114,700 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.
In March 2017, the company incurs the following costs in producing 93,900 units: direct materials $399,600, direct labor $651,300, and variable overhead $849,100. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
| GUNDY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2017 |
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Were costs controlled?
| Click if you would like to Show Work for this question: |
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Brief Exercise 22-1
For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $311,600 budget; $326,900 actual.
Prepare a static budget report for the quarter.
| CROIX COMPANY Sales Budget Report For the Quarter Ended March 31, 2017 |
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| Product Line | Budget | Actual | Difference | ||||
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Guitar: The Edge |
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Do It! Review 22-1
Wade Company estimates that it will produce 6,500 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead $19. Monthly budgeted fixed manufacturing overhead costs are $8,200 for depreciation and $3,500 for supervision.
In the current month, Wade actually produced 7,000 units and incurred the following costs: direct materials $42,700, direct labor $82,800, variable overhead $132,200, depreciation $8,200, and supervision $3,720.
Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.)
| Wade Company Static Budget Report |
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Were costs controlled?
| Click if you would like to Show Work for this question: |