The following budgeted and actual volume and cost data are for March of this yea
ID: 2416533 • Letter: T
Question
The following budgeted and actual volume and cost data are for March of this year:
Budget
Actual
Volume
40,000
36,000
Budgeted manufacturing costs:
Variable costs per unit:
Direct materials
$30.00
Direct labor
15.00
Overhead
5.00
Total fixed overhead costs
$400,000
Actual manufacturing costs:
Direct materials
$1,160,000
Direct labor
580,000
Variable overhead
180,000
Fixed overhead
396,000
Prepare a static (40,000) budget analysis of production costs for March of this year.
Prepare a flexible (36,000) budget analysis of production costs for March of this year
Budget
Actual
Volume
40,000
36,000
Budgeted manufacturing costs:
Variable costs per unit:
Direct materials
$30.00
Direct labor
15.00
Overhead
5.00
Total fixed overhead costs
$400,000
Actual manufacturing costs:
Direct materials
$1,160,000
Direct labor
580,000
Variable overhead
180,000
Fixed overhead
396,000
Explanation / Answer
Actual Rvenue and spending variance Flexible Activity variance Static Direct materials 1,160,000 80,000(U) 1,080,000 120,000(F) 1,200,000 Direct labor 580,000 40,000(U) 540,000 60,000(F) 600,000 Variable overhead 180,000 ---- 180,000 20,000(F0 200,000 fixed overhead 396,000 4000(F) 400,000 - 400,000 total expense 2,316,000 116,000(U) 2,200,000 200,000(F) 2,400,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.