ACCOUNTING EXPERT TODAY prob10

User Generated

oehghf2014

Business Finance

Description

Unformatted Attachment Preview

Problem 10-3A (Part Level Submission) Hill Company uses budgets in controlling costs. The August 2014 budget report for the company’s Assembling Department is as follows. HILL COMPANY Budget Report Assembling Department For the Month Ended August 31, 2014 Difference Favorable F Unfavorable U Neither Favorable Manufacturing nor Unfavorable Costs Budget Actual N Variable costs Direct materials $52,200 $51,200 $1,000 F Direct labor 55,200 52,420 2,780 F Indirect materials 29,400 29,640 240 U Indirect labor 21,600 21,150 450 F Utilities 16,800 16,700 100 F Maintenance 9,600 9,710 110 U Total variable 184,800 180,820 3,980 F Fixed costs Rent 12,590 12,590 –0– N Supervision 16,020 16,020 –0– N Depreciation 6,640 6,640 –0– N Total fixed 35,250 35,250 –0– N Total costs $220,050 $216,070 $3,980 F The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula = $ + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) HILL COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2014 Difference Budget $ Favorable F Unfavorable U Neither Favorable nor Unfavorable N Actual Costs $ $ $ $ $ Click if you would like to Show Work for this question: Open Show Work SAVE Attempts: 0 of 5 used FOR LATER (c) SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer


Anonymous
Great content here. Definitely a returning customer.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags