Problem 10-3A (Part Level Submission) Hill Company uses budgets in controlling costs. The August 201

Feb 3rd, 2012
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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 Manufacturing Costs Budget Actual Favorable F Unfavorable U Neither Favorable nor Unfavorable 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 Dep

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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 COMPANYBudget ReportAssembling DepartmentFor the Month Ended August 31, 2014DifferenceManufacturing CostsBudgetActualFavorable FUnfavorable UNeither Favorablenor Unfavorable NVariable costsDirect materials$52,200$51,200$1,000FDirect labor55,20052,4202,780FIndirect materials29,40029,640240UIndirect labor21,60021,150450FUtilities16,80016,700100FMaintenance9,6009,710110UTotal variable184,800180,8203,980FFixed costsRent12,59012,590-0-NSupervision16,02016,020-0-NDepreciation6,6406,640-0-NTotal fixed35,25035,250-0-NTotal costs$220,050$216,070$3,980FThe monthly budget amounts in the report were based on an expected production of60,000units per month or720,000units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only58,000units were produced.(a) & (b)(a)State the total monthly budgeted cost formula.(Round cost per unit to 2 decimal places, e.g. 1.25.)The formula=$+ variable costs of $per unit.(b)Prepare a budget report for August using flexible budget data.(List variable costs before fixed

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