Braemar Saddlery uses department budgets and performance reports in planning and

Question

Braemar Saddlery uses department budgets and performance reports in planning and controlling its manufacturing operations. The following annual performance report for the custom saddle production department was presented to the president of the company:

         

Budgeted Costs
for 5,000 Units Actual
Costs
Incurred Over
(Under)
Budget Per Unit Total    Variable manufacturing costs:          Direct materials $ 30.00   $ 150,000   $ 171,000   $ 21,000            Direct labor 48.00   240,000   261,500   21,500            Indirect labor 15.00   75,000   95,500   20,500            Indirect materials, supplies, etc. 9.00   45,000   48,400   3,400               Total variable manufacturing costs $ 102.00   $ 510,000   $ 576,400   $ 66,400      Fixed manufacturing costs:          Lease rental $ 9.00   $ 45,000   $ 45,000   $

Explanation / Answer

What is the amount of over- or underapplied manufacturing overhead for the year? (Note that a standard cost system is not used.) (Omit the "$" sign in your response.)

b.

What is the amount of over- or underapplied manufacturing overhead for the year? (Note that a standard cost system is not used.) (Omit the "$" sign in your response.)

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