Wade Companystatic Budget Reportdifferencebudgetac

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

Difference

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

$

$

$

$

$

$

$

$

$

Were costs controlled?

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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
Product Line Budget Actual Difference

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

Difference

Budget

Actual

Favorable
Unfavorable

Neither Favorable
nor Unfavorable

$

$

$

$

$

$

Were costs controlled?

Click if you would like to Show Work for this question:

Open Show Work